On September 9, I wrote an article discussing why I was adding to my position in midstream energy giant Kinder Morgan (NYSE:KMI) at $31 per share. Since that article, shares of Kinder Morgan have continued to fall. The price decline is truly stunning, considering the company generates plenty of distributable cash flow and its business model is not entirely dependent on high commodity prices. The beauty of Kinder Morgan is that it has the potential to offer investors a high current yield and robust dividend growth.
With patience and the ability to ignore the panic, an investor can earn a 16% yield on cost from Kinder Morgan in just five years. This demonstrates the magic of compounding interest, which Einstein is rumored to have called the most powerful force in the universe. Using Kinder Morgan as an example, it's hard not to see what he's talking about. That's why I recently added even more to my position in Kinder Morgan.
Source: Seeking Alpha
Related Articles:
- Free Cash Flow Payout vs. Dividend Payout
- 8 Dividend Stocks With The Right Stuff
- 6 Dividend Stocks Trading at a Double-Digit Discount
- 5 Best U.S. Dividend Growth Stocks
- 5 Low P/E Value-Stocks, Yielding 2% Or Higher
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
In bull markets, dividends become more or less irrelevant. When the Dow Jones Industrial Average traded above 14,000 in 2007, very few stoc...
-
Add it all up, and things are starting to get tense. That leaves investors wondering where they can go for safety. After years of tech outpe...
-
Anxiety over the European debt crisis and distrust in the markets drove volatility in global stock markets to dizzying heights in 2011. The ...
-
Are you on the hunt for a generous and reliable dividend stock? If so, the list of Dividend Aristocrats -- comprised of those few companies ...
-
Individual investors were jolted by the sudden reappearance of market volatility in October. Given a range of issues spanning natural gas av...
-
If you’ve paid any attention to the financial news lately, you’d know that market sentiment has changed. This shouldn’t come as a surprise; ...
-
Dividend-paying stocks are like the ballast that keeps a ship from capsizing during stormy seas. They provide grounding for investors who, w...
-
Overall, the widely followed Berkshire Hathaway investment portfolio shows Warren Buffett knows the value of a consistent and growing divide...
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
0 comments
Post a Comment
Post a Comment