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


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To: E_K_S who wrote (70)10/16/2019 12:25:13 PM
From: robert b furman
   of 156
 
HI E_K_S,

By the time they get both permian pipelines built (although they are shared ownerships) Plus elba export of LNG, revenue will be substantially improved. It appears the LNG export will grow to be huge globally as many projects have received FID's.

Many in the permian do not get the full price for their oil as they must use rail.

For KMI to include a connection to the most efficient method of transporting, a company needing cash flow will pay handsomely to get hooked in to the pipeline.

I do not expect a return to a $2.00 dividend, but I think Kinder has to shoot for that, to redeem himself in the eyes of many stockholders who hung with him. Not only to redeem himself,but he has been buying more stock himself.

I have a mixed feeling about return of capital. I'd like to see the dividend get covered before the dividend gets bumped beyond $1.25.

My average is $19.04 so at 6.6% - I'm a happy camper.

If they keep rising to the 2.00 divind of the past, I'm sitting on a 10% plus yield with a lowering cost basis.

KMI is going to be around for my life and growing without a doubt in my mind.

It's a buy and hold in my retirement plan.

I park it next to my T and XOM and sleep well at night.

I too have a construction project coming.

If I do not have the cash flow from dividends to cover the building , I'll get a construction loan.

Rates are too low for me to sell a portfolio of dividend aristocrats that I have worked hard to get at right prices by selling long term puts and having them get assigned to me.

There are plenty of bankers out there looking to make cheap loans when they know they will get paid back. <smile>

Bob

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To: robert b furman who wrote (71)10/16/2019 1:50:58 PM
From: E_K_S
   of 156
 
Ok good to know. Plan to pay cash for the project estimate it to run $300K-$350K. Have budgeted a NG Fuel Cell 25KW at $800/KW instead of solar panels and Powerwall batteries. I can sell extra electricity back to the utility (even at peak price during the day) but still running the numbers to see the total payback.

The project build is what is called an ADU ( Auxuallery Dwelling Unit) but will build ontop of garage and over kitchen for a total of 650 sqft. Will have to rebuild garage to meet current earthquake code so 2nd story addition meets permits. Project will come in at $300/sqft but still early so total costs could be higher.

Rents for ADU unit (includes electricity, water & Internet) $2,500-$3,000 per month. Other unit (main home-after remodel of $75K) $3,000-$3,500 per month.

The NG Fuel Cell is another revenue stream to the project and all works because of cheap NG delivered to the property.

I now learn that no new construction in San Jose, CA (like Berekley) will not allow NG pipes to the new construction (inludes ADU's). I should be able to install the NG Fuel Cell to the existing structure and then feed the 2nd electric panel to the ADU unit. It makes so much more sense than the Solar Panels (much smaller foor print 6'x6'x6') and you still get all those energy credits (almost $5K). The NG Fuel Cell investment maybe $20K-$25K and can be depreciated 10 years.

The Redox Cube

This may/could add 7% to the project cost but I think total return w/ credits will increase my project cap rate.

I have an investment in the IPO BE and this unit is 10x more efficient. Eventually will let my BE shares go and maybe I can use those proceeds to pay for this unit (have 2 years to decide).

I believe in the distributed power solution but Solar is not always the best answer IMO.

KMI delivers the NG to my utility so in many ways if I go ahead w/ the NG fuel cell, I own many of the component pieces in generating my electricity for my two unit build in Silicon Valley.

EKS

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To: E_K_S who wrote (72)10/16/2019 2:59:34 PM
From: robert b furman
   of 156
 
Sounds neat,

Keep me updated.

I'm thinking of using evacuated tubes for heating water with pex in concrete.

Have studied this for a long time. Doesn't have to keep warm, just prevent freeze.

Tubes with heat exchangers and pumps keep getting cheaper, but must start next spring.

Bob

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From: E_K_S11/1/2019 12:57:09 PM
   of 156
 
KMI shares rise as Richard Kinder buys 300K shares
Nov. 1, 2019 11:13 AM ET|About: Kinder Morgan, Inc. (KMI)|By: Carl Surran, SA News Editor

Kinder Morgan ( KMI +1.8%) shoots higher following a disclosure that Executive Chairman Richard Kinder bought 300K shares worth ~$6M, at an average price of $20.17/share.

Kinder now owns 242.2M KMI shares in a personal account, and an additional 11.8M shares through a limited partnership, according to SEC filings.

The purchase is Kinder's first since August, though he has been a steady buyer of KMI shares, with YTD purchases now totaling more than $130M.

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From: miraje11/27/2019 11:45:14 AM
   of 156
 
Is it time to pull the plug on KMI? Down again today. Insiders keep on buying as the stock keeps dropping..

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To: miraje who wrote (75)11/27/2019 9:47:48 PM
From: robert b furman
   of 156
 
I added to today.

Been a while since I did, and biz is getting better.

KMI should pick up 2.3 billion in December from sale of canadian pipeline.

The dip before the pop.

Bob

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To: robert b furman who wrote (76)12/3/2019 7:58:05 PM
From: robert b furman
   of 156
 
Looks like a buy today - I bought some more today.

If the $1.25 is approved next April, this stock will be yielding over 6.5% with June's dividend.

That's a 5.22% yield for 6 more months and then a 6.3% dividend in a sector that is growing in many ways;

1)ELECTRICAL GENERATION IN THE USA.

2)Exports to Mexico

3)Exports to the world via LNG ports of which some are working now and many are close to start up as the pipelines from the Permian and Marcellus are or will be completed soon.

4) NOT TO MENTION THE MANY PETROCHEMICAL PLANTS BEING BUILT IN THE HOUSTON SHIP CHANNEL AND SURROUNDING AREA.

Bob

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From: E_K_S12/5/2019 10:28:04 AM
   of 156
 
Kinder Morgan sees lower core earnings but higher DCF in 2020
Dec. 5, 2019 10:22 AM ET|About: Kinder Morgan, Inc. (KMI)|By: Carl Surran, SA News Editor

Kinder Morgan ( KMI +0.7%) says it expects adjusted EBITDA to decline next year to $7.6B, in-line with Wall Street estimates but below its 2019 forecast of $7.8B, but signals it would increase its dividend.

KMI says it expects to generate $5.1B of distributable cash flow in 2020, or $2.24/share, ~3% higher than its current DCF forecast for 2019.

The company reiterates plans to raise its dividend to $1.25/share annualized next year, up 25% from 2019, which it expects to fully fund through internally generated cash flow.

KMI expects to invest $2.4B in expansion projects and contributions to joint ventures in 2020, down from $3.1B in 2019.

Also, the company expects its year-end 2019 net debt-to-adjusted EBITDA ratio to improve to 4.4x and to further drop to 4.3x in 2020, with plans to use the proceeds from asset sales to Pembina to pay down debt.

KMI says the moves will provide $1.2B in financial flexibility to buy back shares or invest in attractive projects.

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

Was looking at buying back shares I sold 10/16/2019 @ $20.05/share at/below $19/share. SMA(200) is @ $18.84/share. Will try to do my add at that price.

EKS

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To: E_K_S who wrote (78)12/5/2019 10:46:20 AM
From: robert b furman
   of 156
 
Hi E_K_S,

I bought 900 KMI at $19.67 on 11/27 (three days early).

When price hit the lower Keltner I sold 10 Dec 19. puts hoping to get them assigned and work my cost down a bit.

That juicy $1.25 will begin paying in late April.

I'm happy to wait 4 months to begin receiving 6.35% dividend yield for many years to follow. In between I'm getting 5.08%.

I'll continue to sell 19.00's less than 30 days out as a revenue stream that will help me pay for any stock that may be assigned.

Tempted to just buy more - hard to find a solid 6% plus!!

Can't get that done with XOM or CVX.

Bob

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To: robert b furman who wrote (79)12/5/2019 10:55:54 AM
From: E_K_S
   of 156
 
On my sale I gave up the dividend so need to factor that into my next Buy. I also have WMB on my Buy list. KMI position is larger so am motivated to add to the WMB. The KMI dividend increase has me put KMI ahead of the list.

I still think BOTH companies will do just fine w/ all the Oil/NG we are now producing. I believe the latest number are over 12.6mln barrels a day (2019) vs 3.8mln in 2005

Going to need a lot more pipes to move that oil IMO.

EKS

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