Kinder Morgan (KMI -0.64%) is a selection for the real-money Inflation-Protected Income Growth portfolio. In this brief video, portfolio manager Chuck Saletta offers three reasons why he's holding on to Kinder Morgan's stock despite the company's modest decline since he bought it earlier this year.
Help your money compound faster
Kinder Morgan's dividend was key to its selection for the IPIG portfolio. A well-covered and rising dividend, reinvested over time, can help your money compound faster and could ultimately make you rich. It's as simple as that.
With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.
Key balance-sheet and cash-flow measures for the companies that make up Kinder Morgan
| Entity | Debt to Equity Ratio | Cash from Operations (millions) | Cash Dividends or Distributions Paid (millions) | Operating Cash Available for Capital Expenditures (millions) |
|---|---|---|---|---|
| Kinder Morgan | 1.3 | $3,645 | $3,156 | $489 |
| Kinder Morgan Energy Partners (NYSE: KMP) | 1.2 | $3,491 | $3,033 | $458 |
| El Paso Pipeline Partners (EPB) | 2.1 | $866 | $714 | $152 |
| Kinder Morgan Management (NYSE: KMR) | 0.0 | $0 | $0 | $0 |
Kinder Morgan is a complicated business. Understanding the interaction between El Paso Pipeline Partners, Kinder Morgan Energy Partners, Kinder Morgan Management, and Kinder Morgan is critical to understanding how the company generates the cash it uses to pay its dividends. The chart below, from a recent investor presentation, shows how the different pieces fit together.
Chart from Kinder Morgan investor presentation dated September 12, 2013 .
To follow the IPIG portfolio as buy and sell decisions are made, watch Chuck's article feed by clicking here. To join The Motley Fool's free discussion board dedicated to the IPIG portfolio, simply click here.
