9:09 AM Kinder Morgan (KMI) is reinstated with a Buy rating and a $37 price target by Goldman Sachs, which cities KMI's "strong general partner cash flow outlook, which should drive double-digit dividend growth from a higher proportion of stable, fee-based natural gas pipeline assets."
Well, the old rule of thumb was buy KMP at 7% and KMR at 8%. That would put KMP at $68.57 and KMR at $60. I thought the new rule of thumb was 6% for KMP ($80) and 7% for KMR ($68.57). KMP is already well above 6% and KMR is almost at 7%. So, maybe KMP at 6.5% which would be $73.85. It is up to the trader to pull the trigger on the number of shares and price. If you are not comfortable with the price, buy less or wait.
agree, however the bigger picture is the dividend bubble bursting everywhere, MLPs being hit hardest since they were the biggest risers. no matter how low their interest rates are on debt, they are debt-laden and s/t/risk.