The problem here is that people do not pay attention to current yield. KMP traded $90+ at the beginning of 2012 with a current yield of 5.35% -- this is way too low to hold onto an MLP that is mostly return of capital.
Fast forward to now and KMP at $79 with a $5.04 distribution is 6.37974% -- a much better current yield. KMP is also now in my buy range.
High yield for the last year for KMP was 6.61%. Low yield was 5.353%. Much closer to a decent current yield now and therefore a good buy. I'm actually looking to buy KMR instead.
The current Goldman Sachs price target for is $86 as of 9/30/2012. Buying here gives some nice price upside in addition to a close to annual high current yield.
BTW, I've sold some other high flying dividend stocks because their current yields are too low and their P/E ratios are just silly high.
Kinder Morgan Energy Partners, L.P. (KMP), today announced that it has entered into a definitive agreement to sell its one-third interest in the Express-Platte pipeline system to Spectra Energy Corp for approximately $380 million pre tax. KMP’s joint venture partners in Canada (Ontario Teachers’ Pension Plan Board and Borealis Infrastructure, the infrastructure investment arm of the OMERS pension plan) are also selling their interests in the pipeline system, as Spectra Energy Corp is purchasing 100 percent of Express-Platte. The transaction is subject to customary consents and regulatory approvals and is expected to close in the second quarter of 2013. Express-Platte is a 1,700-mile oil pipeline system connecting Canadian and U.S. producers to refineries in the Rocky Mountain and Midwest regions of the United States.
“This is a win-win transaction for both KMP and Spectra Energy Corp,” said KMP Chairman and CEO Richard D. Kinder.