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New Trade – Kinder Morgan Energy Partners LP (KMP)

Today my order from yesterday was executed and I purchased 11 shares of Kinder Morgan Energy Partners. The KMP is part of a Kinder Morgan trilogy. It pays nice dividend and has a great dividend history.

The company is one of the biggest and oldest pipeline transportation and energy storage company in North America. KMP. The Company operates in five business segments: Products Pipelines, Natural Gas Pipelines, carbon dioxide (CO2), Terminals and Kinder Morgan Canada. In August 2012, the Company acquired Tennessee Gas Pipeline (TGP) and a 50% interest in El Paso Natural Gas (EPNG) pipeline from Kinder Morgan, Inc. In November 2012, Tallgrass Energy Partners, LP acquired Kinder Morgan Interstate Gas Transmission (KMIGT), Trailblazer Pipeline Company, the Casper-Douglas natural gas processing and West Frenchie Draw treating facilities in Wyoming, and KMP’s 50% interest in the Rockies Express Pipeline (REX). Effective March 1, 2013, Kinder Morgan Energy Partners LP (Kinder Morgan Energy) acquired the remaining 50% interest, in El Paso Midstream Group Inc.

The company is profitable and its operating margin as at 27.08%. At the current price KMP may seem expensive based on its PEG ratio. However, Morningstar values the company at $92 a share, my own calculation was at $88 a share and the stock trades slightly below that price. the growth is expected to be at 14% thru 2014 year.

Kinder Morgan rewarded its shareholders with 16 years of consecutive dividend growth at 7.51% 5yr growth rate. The current yield is 5.8%

Trade details

03/12/2013 10:05:17 Bought 11 KMP @ 86.22

Stock details

Total shares held as of today: 11
Estimated annual dividend: $56.76
Consecutive Dividend Increase: 16 years
Dividend yield today: 6.01%
Dividend 5yr Growth: 7.43%
Dividend paid since: 1992

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