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:
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.
Source: Fool.com