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


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From: E_K_S4/22/2020 4:45:05 PM
   of 156
 
Kinder Morgan posts narrow Q1 miss, raises dividend less than projected
Apr. 22, 2020 4:38 PM ET|About: Kinder Morgan, Inc. (KMI)|By: Carl Surran, SA News Editor

Kinder Morgan (NYSE: KMI) -0.9% after-hours as Q1 earnings came in slightly below expectations and distributable cash flow drops 8% Y/Y to $1.26B.

Q1 adjusted EBITDA fell 5.1% Y/Y to $1.85B and revenues slid 9.4% to $3.11B; Q1 dividend rose 5% to $0.2625/share ($1.05 annualized).

"While we have the financial wherewithal to pay our previously planned dividend increase, with significant coverage, in unprecedented times such as these, the wise choice is to preserve flexibility and balance sheet capacity. Consequently, we are not increasing the dividend to the $1.25 annualized that we projected, under far different circumstances, in July of 2017," the company says.

Kinder says it has cut expenses and sustaining capex by more than $100M from its planned budget, and has reduced its 2020 expansion capital outlook by $700M, or nearly 30%.

The company says these actions more than offset the reduction in DCF and should result in an improvement in DCF less expansion capex of ~$200M compared to budget.

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To: E_K_S who wrote (86)4/22/2020 7:55:25 PM
From: robert b furman
   of 156
 
Hi E_K_S,

For my money, the 5% dividend raise is dandy.

I feel even better that they have become and are now showing that they believe the balance sheet and free cash flow is more important than profitless growth.

Don't get me wrong I'd love th extra 20 cents.

That being said, with this new viewpoint, my bet is we get it even faster in the next 2-5 years.

I like the call - it's what I've have said as well if in the board of directors meeting.

I'll take that raise every year till I parish and smile about it.

Thanks for posting the earnings!

Here is the slide show:

mail.google.com

Bob

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To: robert b furman who wrote (87)4/22/2020 10:58:31 PM
From: E_K_S
   of 156
 
I picked up some KMI earlier this week. Was Buying WMB earlier this month at about the same price. I like both of the companies and believe they could be up 50% by this time next year (or higher).

Always have to move the oil & NG.

EKS

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To: E_K_S who wrote (88)4/22/2020 11:48:30 PM
From: robert b furman
   of 156
 
Solid free cash flow and megatrend supports what they do in the long run.

Natural gas equals clean electrical generation and the price of NG is cheap to low.

Bob

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To: robert b furman who wrote (89)4/23/2020 4:18:48 PM
From: gypsees
   of 156
 
I liked this company very much and had it on my short list. But it was included in an article that questioned some companies being able to survive the current environment due to having too much debt. After reading that I removed it from my list. There were a few other companies on that list that I used to trade 20 years ago in the 30's and higher and they were both sub 1.00. Very sad.

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To: gypsees who wrote (90)4/23/2020 5:10:05 PM
From: robert b furman
5 Recommendations   of 156
 
Hi Gypsees,

I'v had KMI a long time and "got kindered" with the dividend decline years ago.

Since then I've averaged down. (along with E_K_S) - we're kind of the lonely regulars here.

For several years the dividend was substantially reduced and KMI has maintained strong cash flow.

Additionally they did some big deals like selling the transmountain pipeline to the government of Canada.

That reduced their debt by several billions.

Bottom line I like how management owns a LOT of shares and have recently added to their positions.

Bottomline : KMI's pipelines in and around Texas have dialed in very long term natural gas transportation opportunity. Their partners with XOM,CVX and the Saudi's plastics and refineries will be on going longer than I will be alive. Their export alliances with Gulf of Mexico deep water ports for both oil and LNG

There are very long term megatrends regarding natural gas electrical generation and exporting of gas and oil to Mexico. These are dynamic and long term growth businesses.

I know some analysts don't think KMI has a big moat. I disagree. The fact that they have easements and can double their capacity without all of the red tape a new pipeline must endure should be considered a formidable moat IMO.

Some may be upset with the 5 cent increase vs the hoped for 25 cent increase. I'll just accept the 5% dividend increase (which is solid in anyone's book) and have quiet expectations that the next 2-5 years will be very nice dividend growth rates.

This one is going down as a super star when it comes to it's dividend cagr .

Good to have a new poster here.

Natural gas has been the key to the US being the only country out there with a reduced carbon footprint. I suspect it will be a very long trend.

Bob

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To: robert b furman who wrote (91)5/1/2020 4:36:24 PM
From: gypsees
   of 156
 
Thanks Bob. Turns out I should not have paid much attention to that list. I took all my favorites I had been watching off based on that article and ALL of them went up without me. Some by several points! I know better than to listen to analysts but I guess after 20 years of not trading I needed a refresher course..lol.. I ended up buying DHT today on the pull back. May get stopped out Monday but for now, I am in :) Thanks for the good input!

Robyn

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To: gypsees who wrote (92)5/1/2020 9:24:07 PM
From: robert b furman
   of 156
 
Hi Gypsees,

Tough day for going up - last two days.

I'm watching till at least tuesday/wednesday.

Breathe in breathe out.

Time for a retrace after one heck of a bounce.

Good to have you posting!

Bob

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To: robert b furman who wrote (93)5/1/2020 9:48:03 PM
From: gypsees
   of 156
 
I am holding 2 stocks over. One was an impulse buy but a real cheapie but I do like it..lol.. AYTU. The other is the DHT. I'm not hoping to hold either very long. If I had more money I'd probably hang on to the AYTU but I only just started trading again after a 20 year break and I only have a very small account so I'm not set up to "invest". :)

I have a "feeling" we may see more downside Monday but I don't know for sure. And IF we do, whether or not it is a buying opportunity remains to be seen. I plan to have several options for going long IF there are any that look like decent risk/reward. Good luck to us all next week!!

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To: gypsees who wrote (94)5/1/2020 10:03:36 PM
From: robert b furman
   of 156
 
WWW is wednesday.

I'm thinking down into tuesday, wednesday at the latest. Then a nice bounce.

Clx is flip flopping till then.

2 cs turned down today. Breathe in breathe out. Its been up strong , so time for a retrace.

I sold some T $27.00 puts today. July's and September's.

If assigned they yield 8 %.

Better than a bank pays.

Bob

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