Kinder Morgan has been one of the best income investments in the world for people that discovered the company and acted upon it. The original Kinder Morgan—the one with the KMP ticker symbol—benefitted from a great confluence of factors that led to 20% annual returns between its 1997 founding and the November 2014 merger.
The story began with Richard Kinder getting passed up for CEO of Enron. He responded by offering $25 million for Enron Liquid Pipelines L.P. Without a doubt, it is one of the great ironies of American corporate history that the eventually bankrupt Enron sold off the most lucrative, cash-generative assets in its portfolio to avoid executive rivalry and focus … Read the rest of this article!
It is historically unusual for Royal Dutch Shell to yield over 6%. This is a company with a very long history of having a fair value that also corresponds to a dividend yield between 5% and 6%. Given how well the American stock market has performed over the past six years, it can be wise to take a look at any large company that appears to be offering a discount.
Royal Dutch Shell does $360 billion in sales per year. Hershey, which I covered yesterday, is worth $15 billion in its entirety. To get a feel for how large Royal Dutch Shell is, you could convert the amount of crude oil and natural … Read the rest of this article!
Hershey stock has come down 15% since the Christmastime period when I wrote about it being overvalued. The price currently sits at $93 per share (down from the January high of $111). I would classify the current price as high end of fair value. Many people will look to the 2.3% dividend yield and conclude that it is too low to meet their needs.
I certainly get that. If you have a plan to live off dividend income within the next ten years, you are going to receive much higher checks if you buy Chevron at $105 per share, lock in a starting yield of 4%, and reinvest those dividend payments until the … Read the rest of this article!