How Much Kinder Morgan Is Too Much For A Dividend Growth Investor?
Jul. 27, 2015 11:57 PM • kmi
- Kinder Morgan Inc. has a mediocre credit rating, but also has a major role in my DGI portfolio, making me a little nervous.
- The company's dividend yield and growth are awfully attractive.
- KMI is a polarizing company - a lot of people really like it, but a lot don't. As is the case with all investments, there are pros and cons.
- I have a few options, including liquidating my KMI position, selling some shares or maintaining the status quo.
Kinder Morgan Inc. (NYSE:KMI ) is the largest income producer in my Dividend Growth Investing portfolio. Is that a good thing or a bad thing? I
admit, I'm starting to wonder.
Over the past year, I have read many anti-KMI articles here on Seeking Alpha and on other sites. Their basic themes: KMI is a house of cards ready to tumble, and its precious dividend is being paid for with fairy dust and impossible-to-fulfill promises.
I got pretty darn good at tuning out the noise. and why not? KMI has become the largest oil & gas pipeline and storage company in North America. Executive Chairman Richard Kinder successfully oversaw the company's huge consolidation last year; he also promised to raise KMI's dividend 15% this year and then 10% annually for the rest of the decade.
And despite the Energy sector's many woes, KMI has hung in there - at least compared to some of the biggest names.