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New trade – Kinder Morgan Partenrship (KMP) – initial position – building my ROTH

Today, I added a new stock position to my ROTH portfolio. The added company is Kinder Morgan Partnership. I have this stock in my taxable account as well, but I wanted to have this stock in my ROTH too.

Therefore I opened a new position. This trade is the last trade adding a new stock. Since now I will only continue accumulating.

(MORE: A Brief Primer on Master Limited Partnerships (MLP) Part 1: What are MLPs, how do they work, and why should you consider investing in them)

I have a policy that I will have only a certain number of stocks in my portfolio based on the account size. Here si the rule of how many stocks I can hold in my portfolio based on the size of my account:



As you can see in above table I can have 10 shares for the portfolio of the 10 k – 20 k size. I do this to keep my account manageable when I am learning managing it and when the account is relatively small. Once I exceed 20 k size I will add 5 more shares. Until then I will only accumulate share in those 10 existing positions.

Since I already maxed out my contributions for 2013 (true I only have one month left) I will reinvest all dividends into RWX commission free ETF as long as my position in this ETF reaches 1000 dollars. Once the position reaches 1000 dollars, I will sell RWX and use the new cash to buy another dividend paying stock or accumulate into existing.

(MORE: Kinder Morgan Energy Partners: Should You Still Buy This Distribution Champ At $82 Per Share?)

As of this writing I have $714 allocated in RWX. Once I invest another 300 dollars (or contribute) I will have one thousand. Then I can release the cash and buy a dividend growth stock while continuing saving all small proceeds and contributions to RWX for the new cycle. Hope this description makes sense.

11/26/2013 09:30:08 Bought 11 KMP @ 81.98

Stock details

Total shares held as of today: 11
Estimated annual dividend: $59.40
Consecutive Dividend Increase: 16 years
Dividend yield today: 6.59%
Dividend 5yr Growth: 7.43%
Dividend paid since: 1992


This trade increases my annual dividend in ROTH IRA account to $1,097.50

2 responses to “New trade – Kinder Morgan Partenrship (KMP) – initial position – building my ROTH”

  1. FFdividend says:

    I like KMI. great buy.

    • Martin says:

      I like KMI too, but at this early phase of building my account(s) I like to choose higher yielding stocks over lower yielding stocks to build my portfolio faster. I use dividend to reinvest and purchase more shares and later better quality stocks which have bigger growth but smaller yield.

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