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Strategies & Market Trends : Value Investing
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To: Elroy who wrote (70726)7/23/2022 7:46:07 PM
From: robert b furman1 Recommendation

Recommended By
E_K_S

  Read Replies (3) of 78958
 
Hi Elroy,

To be honest at first I didn't like the return of capital.

Over the years it reduced my cost and improved the dividend yield based on cost.

Yes that return of capital is tax free. It is a portion of the dividend, not all. If you want the percentages, I'll dig them up but my guess is 40% of the dividend is return.

The rest is taxed as dividends (max of 20%).

Of course capital gains is also a max of 20%.

Over the years I've learned to like the tax free return of my investment.

KMI is a C Corp and is located in Prime natural gas land for Eagle Ford and Permian - both easily exported globally.

Houston ship channel and Corpus Christi deep water LNG terminal. Very good locations for export business.

Not flashy or multi baggers, but a great place to park money and get 7% yield with some of it being tax free.

What's not to like?

The interesting part is no data base really describes the return of capital. You learn about it when the 1099 comes from the broker. SHH!

My highest dividend return on cost and it goes up every year, as the cost basis goes down on a taxfree basis.

WHAT'S NOT TO LIKE?

I MAY BE WAY WRONG, BUT IT IS MY LARGEST HOLDING IN NUMBER OF SHARES OWNED AND AM ADDING TO IT!

Richard Kinder is a very smart man and has a huge insider position and adds to it!

I like that as well.

Hope that helps you make some money!

Bob

Bob
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