Wednesday, October 15, 2014

Kinder Morgan (KMI)

As mentioned in earlier posts, I like KMI, even after the consolidation upcoming with KMP.  KMI is a dividend machine.  Here is a press release today regarding the recent quarter

Here are the highlights:

  • Increased the dividend from $0.41 to $0.44, a 7% increase
  • Revenue was up vs. last year 9%, as was cash available for dividends
  • After the consolidation, which is on track, the dividend is expected to rise 16% next year from $1.72 to $2.00 (full year)
  • KMI finished up today, and closed at $35.29.  The current dividend yield is around 5%
Here is a FASTGraph for KMI, based on FFO (funds from operations) instead of EPS, which is a more relevant number when looking at KMI:

Due to a hit to cash this year caused by $70B merger, the hit a top of around $40....with the current market sell off, the stock is down nicely, and offers a nice buying opportunity, with a "guaranteed" 16% raise in the dividend next year.  

Here is another recent "bull" case article from SA:



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