Kinder Morgan Management, LLC (KMR)

With remarkable return on equity numbers, apparently solid management and recent capital expansion KMR is solid pick. Oh, then throw in the solid distribution payment and it's hard not to own.

Natural gas will be back.

KMR is a grea dividend play for long term investors. I began buying in my portfolio at the low $40 levels but would add here as well up to $50 a share. This is a long term play due to the high yields and the lucrative oil business. I would continue buying this name due to the business prospects in the future that will be more lucrative with rising oil prices.

Strong Consensus Opinion

We still need oil. Pipelines keep humming . . .

KMR pays 10% in an unusual way. It pays in stock so there is no tax due until the stock is sold. This MLP was created as a tool to invest in KMP in a tax free account. Most research tools, boards, screens, etc (whatever you want to call them) don't know how to classify this payout. Is it a dividend? Well maybe but not really. So many of them don't report any dividend for the stock. If it pays 10% in a nontaxable fashion and then the stock price appreciates 5%/year that is 15% total return which isn't bad which is why I think that the total return will beat the market while the price may not.

This MLP is currently mispriced severely because of credit market fears and fears about commodity price exposure. Hold and enjoy the 10%+ dividend with significant share price appreciation when fears abate. There is the added bonus of great management with Richard Kinder who earns all of 1 dollar per year, takes no options and earns a large part of the company via his ownership of Knight Co (formerly KCI.)

Amainstay for sure.

A mainstay in the market with a powerful dividend. I am in with both feet with a price under $40.00.

KMR paid out $4.08 in dividends for 2008 on a ~ $40 stock. They have oil pipelines, which even with reduced demand, should hold up reasonably well as a business. Indeed, KMR expects to pay out $4.20 in dividends next year. Anyone else want 10% yield right now?

Some of the best management around in an industry that will always need their product.

Insulated from commodity price swings, paying historically high dividend right now and latest earnings make it look like we're picking up free upside w/ an 8% dividend why we wait.

Yields!!! Energy must still flow!!

oil & gas pipelines, their earnings are not affected by the price of oil an gas. taken a big hit recently. this world will continue to rely on oil and gas for the forseeable future.
Distributions paid in shares.

Yes, I'm betting on pipelines.

Management arm of kmp. High yield. Partake in success of kmp without tax form hassels.

KMR manages Kinder Morgan Energy Partners, which is a Master Limited Partnership. MLPs were set up by the US government in the mid-80's to encourage infrastructure development in the United States. MLPs do not pay corporate income taxes, federal or state. This gives MLPs an inherent advantage over competitors that are not set up as MLPs. MLPs are required to pay quarterly distributions to their investors. Currently, KMR pays out dividends at ~7% annually. Add on ~8% annual steady growth results in ~15% growth: Steady and high on the risk versus reward curve. Looking ahead in the near future, one sees natural gas on the rise. KMR and other similar ventures should continue to reward long-term income seeking investors with higher returns than other options with similar risks.

LNG is creeping in. LA sanitation dept has orders for new LNG fleet, also Oakland port authority has done the same. CLNE is the supplier for these orders. T. Boone pickens backed company. Another note it appears WPRT is biulding the engines for these fleets canadian Co. just recently listed on the nasdaq. T. Boone in heavey in WPRT also.

Follow the insider ... why bet against Kinder?