If You Invested $10,000 in Kinder Morgan a Decade Ago, This Is How Much You Would Have Today
Kinder Morgan's (NYSE: KMI) generous 6.4% dividend yield will likely attract a lot of attention from investors. But the history here is important. Before you consider buying this North American midstream giant, let's look back at just how good (or bad) the last decade has been for its shareholders.
If you had invested $10,000 in Kinder Morgan 10 years ago, those shares would be worth roughly $4,750 today. Ouch. But that's not the full picture because Kinder Morgan is really an income stock, given that its hefty dividend provides a big part of its total return. And if you had reinvested those dividends, that $10,000 investment a decade ago would have jumped in value to ... roughly $7,750. Still ouch.
In fairness, the midstream sector was hot in the first couple of years of this 10-year span. That resulted in elevated valuations for a lot of those companies, which own the energy infrastructure that moves oil, natural gas, and the products into which they get turned from place to place. So the starting point of this period is something of a problem for Kinder Morgan. Which is why it makes sense to compare its less-than-inspiring performance to that of a peer like fellow energy industry giant Enterprise Products Partners (NYSE: EPD).
Source Fool.com
