Replies to post #808 on Kinder Morgan Inc (KMI)

[Porgie Tirebiter]

"When I'm looking for a stock to buy as a dividend and income investor, I'm looking for three thing - safe and predictable cash flow, a low-risk company profile, and a yield of at least 3%. I do not feel Kinder Morgan fulfills any of these three characteristics currently."

KMI is a great income stock.

My buy in price gives me a dividend yield of 3.3%. I think calculating yield based on my investment size is a better measure than just looking at the current yield.

In addition to the dividend, the income generated writing monthly strangles has returned 20% on the amount I invested. Despite being stuck in a range in the low $20 area for a few months now, Implied Volatility remains around 28 to 30%. KMI's I.V. is a cash cow.

So that's 23.3% income on an investment I made just about exactly a year ago. And that income has nothing to do with share price - I'm not counting share price appreciation at all. Share price didn't factor when I rode it down to the 52 week low, and it doesn't factor at today's tick either.