KMP Kinder Morgan Energy Partners, weird stock offering juicy dividends. August 21, 2006Posted by deminvest in investment, KMP, Single stocks, stocks.
KMP Kinder Morgan Energy Partners is in many ways a strange company:
1) It pays a rich 7.20% dividend which it should not be able to afford, because it amounts to twice Company’s earnings
2) It’s main shareholder is a smaller company: (KMI) Kinder Morgan, Inc. whose CEO is the same mister Kinder of KPM
KMP’s business is natural gas, refined products and crude oil pipeline transportation.
The company is not very cheap:
It shows an OK growth rate: Qtrly Revenue Growth (yoy):3.30% Qtrly Earnings Growth (yoy):11.40%.
Maybe the company will be able to continue growing while continuing to pay such hefty dividends.
I don’t know yet whether I’ll go for it and buy my August $1000 worth of stock of KMP or I will after all decide to get GARMIN, or will look for a new prospect.
This August is a confusing month for stock picking by proletarians!