ABTER1 I just spoke to Vanguard and they said KMR mite declare a div dist this Q instead of a PIK. Have KMR ever played A DIV INSTEad of a PIK. Vanguard also said they would not DRIP a Div dist. but would DRIP a PIK > What you say supper1
that all sounds weird...and totally like something a Vanguard rep might tell you on the phone.
I cannot see how KMR could ever declare a cash distribution or dividend instead of a PIK without a major reorganization. IMHO no way this could happen.
as for "Vanguard also said they would not DRIP a Div dist. but would DRIP a PIK"
First there is nothing to reinvest with a PIK...you already have the new shares. Second; I know that some brokers will not reinvest (for free) cash from an MLP distribution. I have some MLPs at Ameritrade, and they won't do it. Other brokers have no problem at all. This isn't technically a DRIP...it isn't offered by the MLP but by the brokerage as a service to their clients. I believe such brokerages (and I know Schwab and Wells Fargo/Wachovia will do this) are making open market purchases with the distribution funds on behalf of their investors. Obviously any broker would be happy if you did a full commission purchase with any cash you got...thats not the point. I have no idea about Vanguard...I'm not a client of theirs.