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   Technology StocksKMI- a fallen high dividend yielder - for how long?


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To: robert b furman who wrote (38)4/19/2018 11:31:06 AM
From: robert b furman
1 Recommendation   of 156
 
Earnings out this morning and stockholders geta 60 % bump in next years dividend (50 cents to 80 cents) :

finance.yahoo.com

finance.yahoo.com

Very solid report.

Looks like the turn is in with pipelines full and making more money that expected (100 million more aimed at new Capex (high margin) projects.

AFTER BUMPING THE DIVIDEND and BUYING BACK 250 million in stock!!

The turn is done!!

This should put us in the 20's.

If this future commitment of dividend increases is maintained through 2020 any stock bought today will be yielding 7.47 %

Does anyone think that natural gas will be used less in the future? NOT ME !!!

Bob

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To: robert b furman who wrote (39)4/19/2018 11:43:31 AM
From: E_K_S
1 Recommendation   of 156
 
Any chance we see the previous high of $40/share buy 2020?

Seems like the table is set.

Good investing

EKS

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To: E_K_S who wrote (40)4/19/2018 12:36:39 PM
From: robert b furman
1 Recommendation   of 156
 
I think so.

Daily chart :

screencast.com

Weekly :

screencast.com

Kinder was very proud of his shareholder friendly dividend - he is the largest shareholder and pays himself $1.00 a year for being CEO - I like that.

The largest natural gas pipeline in the country and they have reduced debt and only take on high margin Capex.

They were one of the few and first that converted from an MLP to a Corporation. That required huge debt to be embraced. So much so that their credit ranking became threatened.

They sold off some big pipeline interests (but still run them) and have reduced debt.

Their cash flow is monstrous!

I think what gets very little coverage is their "Tall Grass" experimental field, where they inject never drilled shale formations with CO2 and then frac it. It has a great supplemental value to fracing epecially where they are strongest (Permian and Eagle Ford).

For me this was a long term buy and hold as they shore up their balance sheet.

I have no doubt that natural gas is a long term megatrend.

This decline in KMI's stock price was a great gift that the energy crisis ( manufactured by the Saudi's which is a false market event) gave us.

Like semiconductors represent a long term growth prospect - so does natural gas and the future greater use and export of it - all of which must utilize pipelines.

KMI is the biggest but caught with too much debt.

They have the conversion from a MLP behind them and can now resume their growth.

Just in time for the corporate tax rate reductions - perfect!!

I've been adding KMI to an already large position by selling puts 16's and 18's.

I was actually surprised how cheap KMI got this year. What I had not researched properly was the promised dividend bump was labeled a 2018 increase, but the first dividend of calendar year 2018 was still at the 50 cent rate - I think this created an unusual level of doubt.

At any rate - Ive been sitting on some puts that were slightly underwater (the 16's (june) - which are now out of the money and hopefully they will expire to 00.00 which will help me buy the 18's (januarys) - assuming I get them put to me.

If not I'll have to get along with my current position and some more darn money.<smile>

$40.00 would be a double and a 7% plus yield dividend on cost - I can sleep very well with that kind of an investment. LOL

Good to see you here posting , this place has been a sleepy spot to post.

Bob

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To: robert b furman who wrote (41)4/19/2018 1:01:54 PM
From: Jerome
   of 156
 
Hi Bob, I opened a position on KMI this morning. I have read about the future increased demand for NG, from Japan, China and India.

I also held on to my CHK stock for the same reason. I keep looking for NG to break out (for the past two years).

Those export terminals....how far are they from completion?

Are there some new ships being built to transport LNG?

Because the rest of my portfolio is having a great year I can sit on my KMI shares until NG beaks out.

Jerome.

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To: Jerome who wrote (42)4/19/2018 3:18:16 PM
From: robert b furman
1 Recommendation   of 156
 
Hi Jerome,

The biggest LNG ships are so efficient they will make the smaller ships obsolete.

en.wikipedia.org

One or two caveats to that.
1) the big ships require a deeper harbor in which to load and unload.
2) don't think they can fit in Panama Canal

So far there are two LNG export ports actually in operation :
Chenierre in La.

Dominion in East Coast located on the Hudson River.

Several others in building stage on East Coast (From Marcelles shale) and Houston ship Channel from Permian and Eagle Ford shale deposits in TX.

Quite a large export business from Texas to Mexico as well.
Good business with long term run just beginning.

bbc.com (australia bound)

Bob

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From: E_K_S5/29/2018 9:22:45 AM
   of 156
 
Canadian government to buy Trans Mountain Pipeline for C$4.5B
Kinder Morgan ( KMI, OTCPK:KMLGF) confirms the Canadian government has agreed to purchase the Trans Mountain Pipeline system and expansion project for C$4.5B.

KMI says the federal government will to fund the resumption of expansion project planning and construction work by guaranteeing advances under a separate recourse credit facility until the transaction closes, which the parties expect in late Q3 or early Q4.

"Despite losing the EBITDA associated with the Trans Mountain system, we still expect to meet or exceed our 2018 distributable cash flow per share target," KMI says. "We continue to expect a 2018 annualized dividend of $0.80/share, followed by $1.00/share in 2019 and $1.25/share in 2020, a growth rate of 25% annually.

-------------------------------------------------------

Not sure this was expected.

EKS

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To: E_K_S who wrote (44)5/29/2018 9:33:59 AM
From: robert b furman
1 Recommendation   of 156
 
Hi E_K_S,

I view that as a relief.

I've read some articles that state the new big huge tankers will make Canada's energy attempts non competitive - so it looks like a perfect government bail out as KMI gets a big blast of cash to reapply elsewhere.

Love that stated dividend growth.

If it comes to fruition this dividend cut will end up being an excellent long term buy the dip - on a stock with a great long term future.

Sounds like a retirement plan to me. LOL

Bob

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From: Alejandroo Green5/31/2018 8:36:53 AM
   of 156
 
MACD and Stochastic oscillator are triggering bullish signal. On watch for clear above 16.70.


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To: Alejandroo Green who wrote (46)5/31/2018 9:55:06 AM
From: robert b furman
   of 156
 
Major sale of Trans Mountain Pipeline:

247wallst.com

Brings 2 billion to the balance sheet and reaffirms the dividend hikes of 1.00 in 2019 and 1.25 in 2020.

I find it hard to believe that investors are not buying this stock as a definite dividend growth stock.

Bob

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To: robert b furman who wrote (47)6/11/2018 6:40:47 PM
From: Jerome
1 Recommendation   of 156
 
Hi Bob,......two dates that are important for KMI are June 22, which is the next OPEC meeting. There is already resentment toward Trump for trying to push OPEC to higher production.

Over half of the Opec countries are capacity strained....in that they are facing anticipated production declines.

Natural gas utilization by the five biggest consumers (Importers) is increasing. Japan, China, S. Korea, Pakistan and India are upping imports to combat air pollution

KMI and Cheniere Energy.( LNG) will be two of the biggest Us beneficiaries of the increased international demand. This not years off into the future....its this year.

The second important date is about Aug 2, when CHK reports earnings and gas volumes shipped.

For the speculative investor there is very little time premium attached to CHK or KMI.....I would look for slightly in the money options dated about July 20. The CHK 4's at $1.00 and the KMI 16's. at $1.30 ...This one of the few times options could be better than the stock.

Mathematicians have proved that the most profitable options are those that are slightly in the money. If the stock stays flat you get most of your money back, and if it goes up even slightly you have a winning trade.


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