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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (70739)	7/24/2022 9:56:10 AM
From: robert b furman	Respond to of 78958

Hi Paul, Kinder had a lot of debt, which was increasing their cost of debt. They then added to the debt by going to the C corp vs MLP = more debt. They reduced a lot of the debt when they sold the Trans Pacific pipeline back to the Canadian government. Their Capex has since been internally generated, as well as their dividends. KMI has since been quite aggressive in returning their dividend back to the previous $2.00 a share which was an unsustainable rate, They are now at a 1.11 dividend and have slowed the rate of increase to only a penny more per quarter. That being said , the price of KMI has had a hard time holding the 2 handle. I like KMI because much of their distribution system is located in Louisiana and Texas. It has good growth potential as it feeds the Coast's LNG liquefaction export facilities. Kinder is a huge stock holder and does not draw a salary. His large insider position keeps him interested in long term sustainable growth - I like that as a stability feature from management. There is a study out there that supports the idea that companies that reduce their dividend, end up becoming good dividend income growth stocks. KMI has had a substantial dividend growth after their 75% cut now some years ago. I think they are a good place to park cash and get a competitive yield at a good taxation rate. The other C-Corp is Williams brothers: Williams Companies American energy company williams.com The Williams Companies, Inc., is an American energy company based in Tulsa, Oklahoma. Its core business is natural gas processing and transportation, with additional petroleum and electricity generation assets. Wikipedia Headquarters: Tulsa, OKCustomer service: 918-573-2000Founder(s): Williams CompaniesFounded: 1908Employees: 5,425 Stock price: WMB (NYSE) Yahoo Finance $32.34-0.07 (-0.22%) As of Fri. Jul 22, 2022 3:00PM EST Bob