Trades – Kinder Morgan, Inc. (KMI) Purchase

Even with the markets having a record-breaking day, I pulled the trigger on a purchase of Kinder Morgan, Inc. (KMI). I purchased 55 shares for $2,060.85, including transaction fees, giving me a cost basis of $37.47 per share. This purchase gives me an additional $81.40 in annual dividends, increasing my forward annual dividends from $640.36 to $721.76. While this doesn’t help my asset allocation at this time, with the greater markets being overvalued right now, this appeared to be a good opportunity to add to my dividend growth portfolio.

A quick business summary from Bloomberg:

“Kinder Morgan Inc. is a pipeline transportation and energy storage company. The Company owns and operates pipelines that transport natural gas, gasoline, crude oil, carbon dioxide and other products, and terminals that store petroleum products and chemicals and handle bulk materials like coal and petroleum coke.”

Dividend Monk recently wrote up a great analysis on KMI which can be found here.

I have updated my Investments page with this transaction.

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Comments

  1. Nice purchase here. I really like KMI long-term.

    I’ve thought about adding to my 100 shares lately. It’s trading right around my cost basis and I think it’s attractively valued for the long-term.

    Best wishes!

  2. I like the KMI purchase. They’ll be increasing dividends for a while and the starting yield with a 12.5% target annual increase by management is great. The extra compounding from smaller quarterly increases is icing on the cake. Lots to like about Richard Kinder and KMI.

    • I agree completely! Doesn’t hurt that I think they are a bit undervalued, didn’t see any of the serious run-up the market has seen, and are poised to make significant dividend gains over the next few years.

      Thanks for commenting JC!

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