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Investment Analysis Clubs / Dividend Growth Investing


Subject:  Re: Kinder Morgan Date:  9/26/2012  11:47 AM
Author:  kelbon Number:  7517 of 11627


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.

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