Today I bought shares of Kinder Morgan (KMI), the third-largest energy company in North America and operator of an extensive network of pipelines for transporting natural gas, crude oil, and petroleum products. I previously wrote about KMI in October 2012 when I first purchased the stock. Since that time I have been wanting to increase my position, which I decided to do today.
I bought 50 shares of KMI at the price of $36.80 per share, giving me a 4.01% yield on cost. At the current dividend rate, I can expect to receive quarterly dividends of $18.50, which will add a total of $74.00 to my annual dividend income. This purchase was made in my Roth IRA, so dividends and capital gains will not be taxed. When the positions in my taxable account and Roth IRA are considered together, I now have 90 shares of KMI and will receive combined quarterly dividends of $33.30. My forward 12-month dividend total increases to $2,387.
I have now used up the cash in both my taxable account and Roth IRA, so there will be no additional purchases this month. Considering the limited number of attractive investment opportunities available at the moment, I am actually glad that I will be sitting on the sidelines for a while.