Why I Think Kinder Morgan Shareholders Will Win in the End

Kinder Morgan (NYSE: KMI) unveiled a few surprises when it reported second-quarter results back on July 19. Not only did the pipeline giant declare a $0.125 quarterly dividend, but said that it planned a 60% dividend increase next year (to $0.20 per quarter), to be followed by 25% annual increases in both 2019 and 2020. As icing on the cake, KMI's board announced a brand new $2 billion share repurchase program. Those announcements couldn't have come at a better time, given that the company's shares have been anything but rewarding to their holders for over two years:

KMI data by YCharts

While the buybacks are not mandatory, the program does mean share count could fall, paving the way for even larger dividend increases. This, coupled with the already-planned hikes, means one thing and one thing only -- Kinder Morgan's stock might be in for a few very good years. 

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Source: Fool.com