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

To: Smart_Asset who wrote (328)	4/16/2025 9:38:49 PM
From: E_K_S	1 Recommendation Recommended By Smart_Asset Respond to of 354

Here is an overview on DVN that Perplexity AI prepared It's a pretty good overview. I see that management has a fixed & variable dividend strategy based on their operating results. I like that because you get paid more when they have increased cash flow. Didn't realize they had such a model. It looks like as of 2025 the company is using share buy backs rather than a variable dividend. It's explained in the Perplexity AI review above. My no. 1 position is CVX and they have always paid an attractive dividend. I like DVN for their specific NG operations. I own OVV (used to be the old ENCANA) another Canadian NG operator but peeled off shares and put them into DVN. I bought OVV in 3/2020 at $8.32/share and over 5 year hold generated a 31.96% CAGR. The key is 3/2020 was the perfect time to buy WMB & KMI and many other pipeline companies. I continue to own several other pipeline companies including ENB, PBA, EPD (A MLP), ET (A MLP) and recently started a position in SOBO . I would avoid the MLP's because of their K1 reports and special accounting. Most of these (other than SOBO & DVN), I am peeling off shares as their CAGR is >30% which is a rule I use to take profits (take at least 20% off). SOBO is another excellent pipeline company recently spun off from TPL and they operate the XL pipeline. The have huge debt service but a strategy to pay that down from FCF. Management continues to support the dividend but it may/could get cut. I like DVN as their debt is small at 0.6x Debt/Equity is one of the lowest in the sector when compared to the other companies (KMI 1x Debt/equity; SOBO 2.4x Debt/equity). If you research SOBO, you will find some excellent assets but they are a Canadian company so you pay a Foreign tax on your dividends which can be deducted from you taxes if you pay US income tax and/or file an exempt letter for your brokerage (part of the Canada US agreement). My strategy is to add to DVN & SOBO w/ proceeds I take from ENB, PBA & WMB. Will hold KMI but will begin to peel off shares at/above $33. My CAGR for KMI is only 10% that is because I have a few high cost shares from 2014 I paid $31/share. -------------------------------------------------------------------------------------------- Yes KMI dividends are tax efficient as either ROC (Return Of Capital) or LTCG. These are things to consider but diversification is also important. I suspect there are ETF in this sector one could own too. I like owning the individual stocks. The big takeaway is I like the sector from the NG drillers/operators, pipeline & storage and LNG export facilities. You might even look at SRE a utility that is diversifying into Texas AND investing in an LNG Export Facility. They pay a good dividend and have an excellent growth strategy w/ over $5 Billion going into Texas. SRE is in my top 10 but only yields 3.5%. SRE is one of my longest holds from buys in 1998. The CAGR is only 6.15% not including dividends so the money probably would have done better in the $SPX. Hope that helps. Check out Perplexity's DVN analysis (at the top). I have adds every 3% lower but may just continue to average in. $44/share is my reversion to the mean estimate in 18-24 months.

To: Smart_Asset who wrote (328)	4/16/2025 9:55:28 PM
From: robert b furman	1 Recommendation Recommended By toccodolce Respond to of 354

, I've been starting a position in VTS, Vitesse. Currently paying a dividend of $2.25 after a merger with Lucero, a Canadian oil producer. Yield of 11.24 %. They have their 2025 production edged in the mid 65's and half of 2026 also hedged their abouts. The last quarter, the officer said "we can maintain the dividend easily with crude in the mid 60's' They own oil royalties and are not an operating E&P company. Early but interesting company for me. Bob .