Monday, October 25, 2010

Great Dividend Stock!

Kinder Morgan Energy Partners LP (KMP)
Here is the description of the company given on Google Finance:
Kinder Morgan Energy Partners, L.P. (KMP) is a pipeline transportation and energy storage company in North America. KMP owns an interest in approximately 28,000 miles of pipelines and 180 terminals. It has five business segments: products pipelines, natural gas pipelines, CO2, terminals and Kinder Morgan Canada. On October 1, 2009, KMP acquired the natural gas treating business from Crosstex Energy, L.P. and Crosstex Energy, Inc. On November 1, 2009, KMP acquired 40% ownership interest in Endeavor Gathering LLC, the natural gas gathering and compression business of GMX Resources Inc. In May 2010, the Company completed a 50/50 joint venture with Kinder Morgan Energy Partners, L.P. (Kinder Morgan) involving the Company's midstream business in the Haynesville Shale, and the sale of Terryville Field.
Kinder Morgan is one of the largest pipeline master limited partnerships in the United States. The definition of a MLP is here:
On October 20, 2010, KMP raised their quarterly dividend to $1.11 per share. The dividend is payable to shareholders on record as of October 29, 2010. The distribution is scheduled for November 12, 2010. As of today KMP is trading at 70.51, which would put the dividend at 6.296%.
If you are looking for a great dividend paying stock with an even better past of dividend payouts, then KMP is a good choice. They have a 30 year history of raising their dividend yearly. Aside from consistently raising their dividend they often raise it more than the rate of inflation. Inflation has averaged 3.36% a year since 1913. If you are looking for a dividend stock to add to your portfolio, one that outpaces inflation is very important. Otherwise, the value of your money will be decreasing yearly. This will defeat the whole purpose of investing. Adding KMP to your portfolio will help you battle inflation by making use of their fantastic dividend.
 They are a consistently growing company. Their gross profit has risen the past four years. The stock price of the company has gone up over 75%, since early 2006. The company also appears to have great management with shareholders best interests aligned with their own. This is a quote I found on their website  At Kinder Morgan, we pride ourselves on being a different kind of energy company. What makes us different?
It starts at the top with Chairman and CEO Richard D. Kinder, who earns a salary of $1 per year and does not receive a bonus, stock options or restricted stock grants.  As a shareholder/unitholder, Kinder’s financial rewards are directly aligned with the company’s investors – if the company does well, he does well.

I will end my post with that. If true, it says more than I even could about the strong foundation and bright outlook for this company.

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