Monday, July 27, 2015

Recent buy - July 2015 (2)

Recently, I put some fresh capital to work!

Kinder Morgan Inc.
Buy 19 shares @ $34.79 at 7/25/2015

Kinder Morgan Inc is the fourth largest energy company in the US.
They transport and store petroleum on a very large scale.

From an investor point of view, this is one of the few non-Aristocrats I added to the portfolio.
Their current dividend increasing streak is only 4 years, but according to David Fish' CCC list, they are a former Contender.

We have seen recent declines in all Energy related stocks.
CVX, down 16% since I bought it, last September.
HP, down 45% in the same period.
XOM, down 20%.

This does not worry me at all.
We cannot time the market and we have to treat it as opportunities to average down.
I will definitely try to do so with CVX, if their decline continues.

On the bright side: my yield on cost on this KMI purchase starts at an amazing 5.52%.
Theres more good news, as KMI could transfer and store other products as well. For example natural gas. This should maintain a very nice income stream in the future.

DGR-1, 9%
DGR-3, 31.9%
DGR-5, n/a

The yield of 5.00% is below the sector average of 5.45%, but I'd take a 5% yield any day.

What do you think of this purchase?

Thanks for reading!


  1. I just bought some myself (wish i would a waited a few days) and at today's closing price your getting a forward yield of 5.6% , not too shabby.

    1. That's an excellent entry point indeed!
      Congratulations with your purchase.

      When looking at my Watch List, I feel like I'm in a candy store. So much quality stocks for sale, at fair prices. Unfortunately, fresh capital is limited.

      Thanks for your visit!

  2. Great buy, KMI price has come down quite a bit lately and it's a good idea to take advantage of this opportunity and buy this stock.

    1. Hey Tawcan,

      Thanks for your comment. You are so right. It currently has a great entry price. Let's hope they won't fall until 0, but I am confident that won't happen.

      Have a great weekend.

  3. No shortage of energy picks among our dividend community. The pipeline biz still remains strong and KMI is one of the best. I have on my watch list ETP and EPD as well. Not sure why they aren't as popular as KMI. Thanks for sharing.

    1. Hey DivHut,

      ETP and EPD are not on my watchlist. As a foreigner it's pretty hard to know all the major companies in a sector, but maybe if you start writing about them, I could add them to my watchlist for future analysis.

      Best wishes, DfS