I decided to sell a KMI put this morning to either collect additional income or average down on shares.
I originally sold a put back on 01/23 that I closed out on on 05/23 for a $165 profit. You can find these trades on my options tab.
I initiated a position in KMI back on 12/07 in a post I mentioned here.
Today I Sold 1 June 22 '13 $32.50 Put @ $1.18. I'll either collect $118 or 100 shares will get assigned to me for a cost of $31.32/share. This would also lower my cost basis to $32.23/share from $33.74 not counting commissions. Either way I consider this a win.
I kept a close eye on KMI in mid november when it dipped below $32. The only thing keeping me at bay is the low earnings. How can it afford to pay such a high dividend? One thing I especially like is the CEO's salary, which I believe is a dollar per year. His pay raise depends on an increase in dividends.
ReplyDeleteFor KMI, I care more about their cash flow than their payout ratio. Take a look at their distributable cash flow. The same goes for all MLP's and REIT's. You can't evaluate them the same as a normal stock.
DeleteGood luck and thanks for stopping by!