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Author: PuddinHead42 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 8893  
Subject: Kinder Morgan Date: 9/23/2012 8:23 PM
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http://stockcharts.com/freecharts/gallery.html?kmi

pays 3.9% now. Has paid dividend since company was founded. Plans to increase Div 12% each year. Gets its income from its ownership of KMP and recently acquired El Paso Partners. Will benefit from increasing extraction and use of natural gas.

Chart looks nice too, cup with handle if that is you thing?

Thinking of making this my second dividend growth after Waste Management. Gives me a good start on diversity.

Thoughts?
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Author: Hohum777 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7508 of 8893
Subject: Re: Kinder Morgan Date: 9/23/2012 9:08 PM
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Thinking of making this my second dividend growth after Waste Management. Gives me a good start on diversity.

Thoughts?


I don't follow the Kinder Morgan's too closely. I think one is a real MLP and the other is not.
If you opt for the MLP one, what type of account do you plan on using for the purchase? Put another
way, are you aware of UBTI and its implications in a tax-deferred account?

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Author: PuddinHead42 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7509 of 8893
Subject: Re: Kinder Morgan Date: 9/23/2012 9:17 PM
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Not considering KMP which is the MLP, considering KMI, which owns a chunk of KMP, but passes its income along as "normal" dividends.

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Author: RHinCT Big gold star, 5000 posts Ticker Guide SC1 Red Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7510 of 8893
Subject: Re: Kinder Morgan Date: 9/23/2012 9:20 PM
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KMI is the one that is not an MLP, and pays the 3.9% dividend.

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Author: TomFoolNC Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7511 of 8893
Subject: Re: Kinder Morgan Date: 9/25/2012 1:04 PM
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bit richly valued I think, historical dividend more in the 7% range

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Author: RHinCT Big gold star, 5000 posts Ticker Guide SC1 Red Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7512 of 8893
Subject: Re: Kinder Morgan Date: 9/25/2012 11:42 PM
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I didn't find history farther back than early 2011 on Yahoo finance or Google finance. Since then the dividend on KMI hasn't been much above 4% when paid.

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Author: DBrown7 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7513 of 8893
Subject: Re: Kinder Morgan Date: 9/26/2012 12:40 AM
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The higher dividend yield would be for KMP, the partnership. KMI was public for a number of years, taken private, then brought public again in 2011.

Don

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Author: kelbon Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7517 of 8893
Subject: Re: Kinder Morgan Date: 9/26/2012 11:47 AM
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Thoughts?


For what it's worth, Morningstar considers KMI to be fairly priced. Their "fair value" price on the stock is $38 a share. Their "consider buying" price is $26.60. Presently KMI garners their three star rating (fully valued).

Kinder Morgan has three different flavors:

— Kinder Morgan (KMI) which pays a dividend and functions as a "regular" corporation. They own general partner KMP. The dividend is around 3.9%.

— Kinder Morgan Energy (KMP) is a master limited partnership that is focused on energy transport and storage. The dividend is around 6.1%.

— Kinder Morgan Management (KMR) is a different share class of KMP, but without MLP's tax complexity. Their "dividend" is paid in shares rather than cash.

Of the three entities Morningstar considers only KMR "undervalued" presently, giving it a four star rating.

kelbon

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Author: RHinCT Big gold star, 5000 posts Ticker Guide SC1 Red Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7518 of 8893
Subject: Re: Kinder Morgan Date: 9/26/2012 12:18 PM
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And if I understand things correctly the dividends from KMP are taxed as ordinary income, making comparison to regular dividends difficult.

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Author: gdett2 Big gold star, 5000 posts Old School Fool Ticker Guide Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7520 of 8893
Subject: Re: Kinder Morgan Date: 9/26/2012 1:10 PM
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RH,

dividends from KMP are taxed as ordinary income,

It depends on what the K1 says they have distributed.

It may be returned capital, income, or ???

Returned capital, comes off the basis and is taxable as cap gains when you sell. If your basis drops to zero, then it I believe it becomes income.

Gene

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