Ive owned KMP for close to a decade, reinvesting dividends and have acquired a total of over 3400 shares during that time. I keep wondering if it's time to sell, but it's been pretty good to me over the years, I like the payout - but is there a better place to put the money? It seems like KMP continues to make all the right moves for continued growth - am I overlooking something...should I just continue to sit on this and reinvest the dividends?
Maybe buy and hold forever? I've owned for like 8 years, cost below 60 and I'm afraid of the tax bite if I sell. If the fundies are good, I just sit back and collect yield. However now I rather wish I'd started with KMR
Those were precisely my thoughts. If he had held KMP for 10 years and had accumulated 3400 shares, wouldn't you think the guy would be smart enough to figure out himself on what to do? Why ask Yahoo Messenger Board?? ha!
you could also consider folding your position but stopping the reinvestment of the distributions for a while and putting them into something else. Gives you a chance to diversify a bit
The market adage is, sell your losers and let your winners run. Unless your KMP is in a tax differed
account, if you sell uncle Sam would want his share. You will also have to worry about where to invest
and you do not know how that will go. Sometime doing nothing is a best solution.
The stock market is at an historical peak, KMP is close to 20% off the peak. Which has more upside? Bond yields are starting to retrace some lows (prices historical highs)....while KMP yields are still just off historical highs. Which investment has the better upside? Maybe the stock market continues to soar and bond prices continue to rally but the smarter position is to hedge against it. KMP fills that hole as a less risky hedge. Don't watch the hype, watch the fundamentals.
If you have owned KMP for ten years., as I have, your cost basis per unit should really be low. Mine was orginally in the 50's with some later purchases it has advanced to 64. So todays 6.99 percent payout does not reflect what I am really making on my investment. Plus the capital gain. You ask "should I sell". In my position I can't see selling. I am in for the long haul.
Sounds like you and I got in about the same time. I started with 3000 shares and have been reinvesting every qtr. I'm closing in on 5000 shares shortly. Anyone selling this has to be crazy. I'm getting sort of old so when the kids get it, it is even a better deal.
Lest I repeat myself Jim Cramer loved KMP in May 2013 and it immediately tanked. In late May 2014 Jim stated that he was "concerned" that KMP was too big to continue their growth........Need I say more Cramer has spoken and since then KMP has been straight up...... You have to love it.
I have frequently thought about starting a Kramer contrarian fund that goes the opposite of his recommendations. I don't think the guy understands the "dividend" side of the stock market.