Today I bought Kinder Morgan Energy Partners LP (KMP) ahead of the IPO of parent company Kinder Morgan, Inc. (KMI). Kinder Morgan Inc. will go public again this week. KMI should price between $26 - $29 a share when it does hit the market. It is also expected to carry a nice 4% dividend yield.
In the mean time, I have pulled the trigger on a stock that I have been watching on and off for the last few years KMP. The pipeline industry is strong, and KMP pays a healthy 6% dividend. Kinder Morgan has a history of very strong delivery. The stock has been on a tear, and is only slightly lower than its 52-week high of $73.08. Today I have paid $71.74 a share with the intention of holding this stock for the long term. I will also closely watch the price on KMI once it is actively on the market.
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Kinder Morgan Inc.
ReplyDeleteKMI shares hit the market today. They opened well up from the IPO price targets and fell throughout the day, but still finished up about a buck (or two over the top end estimate). It’s hard to say if they will slide back into the expected range of $25-$29, but I decided to jump in at $31.00.
Kinder Morgan, Inc. (NYSE: KMI) Started as Neutral with $32 target at BofA/ML; Started as Neutral with $32 target at Credit Suisse.
ReplyDeleteKinder Morgan Energy Partners LP (NYSE: KMP) Resumed as Buy at BofA/ML.