Dividend Increase – Kinder Morgan, Inc. (KMI)

Wednesday, April 18 the Board of Directors of Kinder Morgan, Inc. announced a quarterly dividend increase of from $ 0.125 to $ 0.20 per share that’s payable May 15, 2018 to holders of record April 30, 2018. This is a 60 percent increase from last quarter’s dividend, and is consistent with the plan KMI announced during the summer of 2017. KMI continues to expect to use cash in excess of dividend payments to fully fund growth investments, further strengthening its balance sheet. With current price $ 16.54 (yesterday's close), this raise brings their dividend yield to 4.84%.

“The board delivered on our commitment made in mid-2017 with the $0.20 dividend we are declaring today,” said Richard D. Kinder, Executive Chairman. “Even with the substantial dividend increase, we still expect to internally fund all of our growth capital with some excess remaining. In the first quarter, we used some of that excess to repurchase shares. In addition, we remain committed to continuing the important work of strengthening our balance sheet and attaining a Net Debt-to-Adjusted EBITDA ratio of at or below five times. For the foreseeable future, we expect to continue funding all growth capital through operating cash flows with no need to access capital markets for growth capital,” Kinder added.

Since I own 200 shares of KMI, this will increase my portfolio's projected annual net dividend income by $ 44.70

That increase rises my YOC to 2.43%. 

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You can follow the development of my dividends here.

Full Disclosure: Long KMI

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