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Technology Stocks : KMI- a fallen high dividend yielder - for how long? -- Ignore unavailable to you. Want to Upgrade?


To: E_K_S who wrote (40)4/19/2018 12:36:39 PM
From: robert b furman1 Recommendation

Recommended By
Jerome

  Read Replies (1) | Respond to of 160
 
I think so.

Daily chart :

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Weekly :

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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