Friday, March 8, 2013
New Purchase - KMI, LO
I'm reporting two purchases from 03/07 using proceeds from WM shares that were called away.
I bought:
52 shares of LO @ 38.179/share ($114.40 dividends/year)
58 shares of KMI @ 37.01/share ($79.92 dividends/year)
After my 100 shares of WM were called away my future dividend income dropped $146/year.
After adding these two new purchases my net increase in future income is $48.32/year.
This now brings LO and KMI up to full positions.
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Great purchases AAI! I just picked up KMI myself and am actually looking to pick up LO in the next couple of days depending on when a recent transfer clears.
ReplyDeleteHi writing2reality,
DeleteThanks! It seems we are on the same page then. I think both stocks are currently attractive.
I will be sure and check out your updates.
Thanks for dropping by!
AAI, great buying LO. I was thinking today to add more shares as well but then decided to open another trade on Monday. Glad to see you buying LO.
ReplyDeleteThanks Martin. I believe LO is presenting a rare opportunity in this market.
DeleteGood luck on all your options trades. You have been very busy!
Take care
AAI,
ReplyDeleteWhat can I say? Love the buys. I've been eying the same exact two companies and purchased shares in LO today for almost the same price as you.
KMI was a just-miss a couple days ago before it ran up again. I'd love to pick up 50 shares very soon.
Best wishes!
Hey DM,
DeleteDecent values are hard to find in this market but I find LO very attractive here. There are some concerns but that's why the price is attractive. Look at what NSC has done since everyone was worried about the impact of coal. I did pay a little more than I wanted to for KMI but my average cost is a couple dollars less.
Good luck on your trades, I'll be watching for your updates.
Cheers
Why do you invest into KMI and not to KMP for example? Is it because of KMP is a partnership?
ReplyDeleteHi Martin,
DeleteIt's mainly for two reasons. First, KMI is supposed to grow their dividends faster. Second, their tax structure is set up so that they pay regular dividends. You don't have to worry about a k-1 form at tax time.
Here's a decent general summary I read on SA recently:
http://seekingalpha.com/article/1162281-kinder-morgan-companies-projecting-strong-dividend-growth-in-2013
Nice purchases! I've been watching both of those stocks myself. I already own some KMI in my taxable account, but I've been thinking about buying it for my Roth IRA. I don't have a position in LO yet, but I've noticed the recent pullback.
ReplyDeleteThanks DGM. As soon as the fears over the menthol bans disappear then LO should head higher. There is some risk but I think it's attractive here.
DeleteThanks for dropping by!