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Trade adjustment – Kinder Morgan Partnership (KMP) addition #3

I hoped the price of Kinder Morgan Partnership will continue sliding down due to irrational selling triggered by a report issued by an analyst Kevin Kaiser of a research firm Hedgeye as I wrote in my yesterday’s post.

Crazy reports like this may move stocks down and in the case of Kinder Morgan which was paying consistently its distributions since 1992 and regularly increasing it for 16 years it is a blessing when the stock like this is beaten down. And it is a great buying opportunity.

As my friend blogger CI said in his comment below my yesterday’s post:

“In my eyes all the hoopla is just about scaring people, […]. I bet that 6 months from now nobody will remember this.”

I agree and I am buying more shares in situations like this.

I hoped the price would go lower, but today’s another crazy move of the market (based on bad economy view from FED) my contingency order has triggered the buy order and I bought 12 new shares.

Trade details

Today the order fired and I bought 11 shares of KMP:

09/18/2013 14:00:49 Bought 12 KMP @ 79.62

Stock details

Total shares held as of today: 45
Estimated annual dividend: $237.60
Consecutive Dividend Increase: 16 years
Dividend yield today: 6.75%
Dividend 5yr Growth: 7.43%
Dividend paid since: 1992


This trade increases my overall dividend income in TD Ameritrade account to $1,014.98 annually getting me closer to my 2013 goal of reaching $100 monthly dividend income.

2 responses to “Trade adjustment – Kinder Morgan Partnership (KMP) addition #3”

  1. Bret says:

    I’ve tried partnerships before but being in the US and having someone else doing my taxes taught me you either need to sink $50,000+ into them or leave them alone. They need you to submit a K1 to complete your taxes, and this is a lot of work as you (or the preparer) slogs though reports and your purchases and sales to figure out what the nature of the distributions are. When I used to do this even before having a preparer, I used to just book it all as ordinary income, but even that gets confusing, since you aren’t treating it the RIGHT way, and later on you may have to correct that – or look to your favorite diety to help you if you get audited, yech! I found it just isn’t worth it to be in it for small amounts for all the tax paperwork, so I swore off partnership income this year. BTW, there is nothing wrong with OPTIONS on partnerships, just don’t go getting any distributions (should shares be put to you, etc).

    • Martin says:

      It’s of course up to each investors ability and guts. I already have a few K1 in my taxes, so i believe one more won’t kill me :) However, how is it when you have KMP in ROTH, then it doesn’t matter right”

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