Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : KMI- a fallen high dividend yielder - for how long? -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (213)	12/8/2023 7:21:46 PM
From: Johnny Canuck	1 Recommendation Recommended By E_K_S Respond to of 357

I have never been a fan of return of capital, but as your text points out in some cases it can be an effective tax strategy. I know for many high dividend ETF it is essential an erosion of capital. I would rather hold the stocks myself and control the timing of when I need take some of the capital for income needs. It usually happens for ETF offering double digit dividends in a low interest rate environment for retirees. Some dividends are generated by cover calls. Some are generated from the dividends of the stock of the companies held in the ETF and any short fall is an erosion of the capital base.

To: E_K_S who wrote (213)	12/8/2023 9:04:50 PM
From: robert b furman	Respond to of 357

Hi E_K_S, I like the return of capital from KMI.I surely doubted it at first, but have changed my view. I have owned KMI long enough to have some $30.00 shares. As do a LOT of KMI employees. I think they have used this approach to add some liquidity to the employees (and older stockholders ) liquidity. If a sale was needed, it had less of a loss attached to do it. I don't have a link, but read that this year's ROC will be less than in past years. Who knows. I think this is an example of why we should own shares in companies where execs (Kinder) have huge holdings of the outstanding shares. It puts shareholders with the same interests as the execs. Bob