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Technology Stocks
KMI- a fallen high dividend yielder - for how long?
An SI Board Since March 2016
Posts SubjectMarks Bans Symbol
179 49 0 KMI
Emcee:  robert b furman Type:  Moderated
Kinder Morgan is the countries largest pipeline company in the US.

It has recently reduced its dividend to be able to internally fund and expand its operations - primarily the transporting of natural gas.

With the natural gas resources growing from the innovation of fracking technologies there is a mega trend at work with increasing uses of natural gas.

These growth areas are the result of four long term growth categories:

Electrical generation that is replacing coal fired plants with that of natural gas
Exporting of Natural gas to Mexico
Industrial use of natural gas in making hydro carbon based products
The exporting of LNG to world markets.

KMI currently has the largest distribution network in the US.

KMI sees a huge growing demand for more pipelines to serve the above four growth sectors.

The need for additional capital has forced a reduction of the dividend so that funds can be raised internally.

The application of these funds have been diverted from dividend streams to future growth projects.

I propose that after the expansion phase of their pipeline system is accomplished a strong dividend policy will be reintroduced.

To accumulate KMI shares during this stock price weakness is an opportunistic, but long term investment that will pay dividends into the long term future at above market yields.

The price weakness started when KMI announced it was buying (along with Brookfield Infrastructure)the remaining assets of the troubled Natural Gas Pipeline of North America:

Kinder Morgan, Inc. ( KMI) and Brookfield Infrastructure Partners L.P. (NYSE: BIP, TSX: BIP.UN) today announced a definitive agreement whereby they will jointly acquire, from Myria Holdings, Inc., the 53 percent equity interest in Natural Gas Pipeline Company of America LLC (NGPL) not already owned by them for a total purchase price of approximately $242 million. KMI will pay approximately $136 million and increase its ownership interest from 20 percent to 50 percent, and Brookfield Infrastructure will pay approximately $106 million and increase its ownership from approximately 27 percent to 50 percent. The transaction values NGPL at a total enterprise value of $3.4 billion, inclusive of existing debt.

Kinder Morgan, Brookfield Infrastructure to Acquire Myria Holdings Inc.'s Majority Interest in Natural Gas Pipeline Company of America

At this point Standard and Poors has put KMI on a credit watch and that has caused the reduced dividend - which was needed to shore up KMI credit rating.

This is where present and future LNG ports to export LNG are located - well within KMI'S pipeline presence.

This is a description of the assets bought by KMI and Brookfield:

One can easily see that Kinder has added to their existing network a 9200 mile pipeline that is well situated to grow Mexico exports and LNG exports as well as electrical generation plants and industrial plants for converting hydrocarbons to many products.

Once again this is a long term plan, and huge in scope.

It will be a long term dividend growth retirement plan for me.

I encourage others to join in the study of this expansion and critique weaknesses that may be mentioned.

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179Best move they ever made. Get cash and get out of Green House Gas/ Fossil Fuel robert b furman2March 1
178It varies there is no set period. I would assume at/near/after earnings especiaE_K_S1March 1
177I can't understand your answer. When does WMB usually increase their divideElroy-March 1
176I wish it was once per year! That's what killed KMI is they actually cut thE_K_S1March 1
175When does WMB usually increase its dividend? Is it once per year, or do they doElroy-March 1
174Been making small adds to my KMI; my WMB position is 2.5x that of KMI so peeledE_K_S-March 1
173After a Strong 2022, Kinder Morgan Looks Set for a More Sedate 2023 Kinder MorgE_K_S-February 28
172Looks like tax efficient as long as long term capital gains tax rates stay whereE_K_S-February 26
171In past years each quarter may vary. More RoC in later q's. Bobrobert b furman-February 26
170Hi E_K_S, It is a bit of a wonder to me as well. In REIT's I didn't lirobert b furman1February 26
169<i> WMB was only 17.8% ROC. </i> I just looked at the past three yeElroy-February 25
168REE: KMI - dividend I noticed on my Schwab 1099 KMI shows 100% of their dividenE_K_S-February 25
167<i>Negative income could be an offset. BUT is it return of capital?</iElroy-February 25
166Negative income could be an offset. BUT is it return of capital? With passive robert b furman-February 25
165<I>That puts my additional revenue into a high tax bracket in good years. Elroy-February 25
164Hi Elroy, I believe WMB and KMI both to be C Corps. I have an ownership in a drobert b furman-February 25
163Hi Robert. I own EPD, MMP and WMB, all pipeline companies. I don't own KMIElroy-February 25
162HI all who follow here: I've attached my recent analysis and hopes regardinrobert b furman3February 25
161Settling in at up 10 to 11 cents in the after hours. It had a bigger pop but irobert b furman1January 18
160Kinder Morgan Reports Fourth Quarter Earnings Per Share up 7% and Distributable accountant3January 18
159Kinder Morgan Reports Third Quarter Earnings
158You and me both JB. Good to HAVE YOU POSTING HERE! Bobrobert b furman-7/25/2022
157Hi Bob, <i>20's coming our way?</i> Touched there briefly lastmiraje-7/25/2022
156Hi miraje, So far an earnings beat and better guidance is moving the stock upwarobert b furman-7/25/2022
155AH response is basically ho hum... Kinder Morgan Announces Dividend of $0.2775 miraje17/20/2022
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