entire income producing security market is under attack by shorts, HFTers and media which wants to pull these securities back down. They had been strong but now are out of favor.
Surely it's the expectation that interest rates will start going up with the end of QE3. MLPs are highly leveraged and the rising cost of money will cut into their earnings. The big question for those of us holding til we die is whether they will still be able to meet current payouts.
A 5 year chart would suggest this is a buying opportunity. Each time it has reached the previous low it has moved higher from there. It is right there now. KMP has been a winner for me using these pull backs to enter positions in the stock. If it closes lower than the March 6th low however it may head lower.
im having a lot of give back with all my 6% plus solid dividend stocks. its some hedge fund rotation thing. the yield benefits and earnings growth, and long term dividend increase trend is still in tact. either buy more, or relax and wait a month. they will be right back where they were.
If rates go up then probably so will inflation and much of KMP's revenues are inflation adjusted
Bottom line: earnings will increase at a faster rate than inflation. Forget about trying to make a profit trading KMP and be content with rising distributions.
You're right it's a bunch of hedge fund lemmings that have decided to run with the taper game plan, sell everything with yield. Somehow, since last week, people can get all of the income they need from a 2% ten year. This morning's economic numbers sucked and the Fed is going nowhere any time soon yet the machine selling of everything yield continues.
Hold or buy KMP even at 6%. Keep looking at the MLP ETF's etc. and you'll see in many or most of them KMP is their top holding. The pros know something we retailers don't. Today had to do with the fear of railroad companies transporting oil. Think about it they crash a lot spilling oil and are more expensive to move the crude.