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
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