Not sure I understand this. While we will have more shares, the price I'm guessing will be around what KMI is now, which is much lower the KMR's share price and the dividend is far below KMR's stock split rate or whatever their quarterly dividends are called.
I'm a long term investor in it for the dividends. I liked the fact the KMR was stable and paid a wonderful dividend. Now I'm guessing that dividend wasn't realistically capable of being maintained.
I'm concerned that the negative press of the last few months prompted this and may have been true. I'm concerned about what will happen after the dust settles. Will shares of KMI drop like a stone and the divi not be able to be sustained in a few years.
And the fact that Richard Kinder was once connected to Enron, the smartest guys in the room,hangs in the back of my head. I'm concerned with what he is up to.
Presently it is difficult to determine accurately how much KMR holders will benefit from the reorganization. One thing is certain, KMR shares value increased in value about 20 points when the proposed reorganization was announced. At the same time KMI price also increased.
The only negative is that the tax deferred "in kind" dividend for KMR will no longer be available so that in a taxable account the KMI dividend will be taxed
What the future dividend of KMI will be is not known for certain. But it does appear that the market believes the reorganization will be a huge positive for KMI with the prospect of annual dividend increases of 10%.
Also the value of KMI has increased and it is very possible that if annual dividend increases of 10% materialize the value of KMI will also increase. The future of KMI is bright.
Suggest yuo go back and look again.
The price will be exactly the KMI price because you will own KMI! The dividend will be about the same because you get about 2.5X shares. The bonus is the new KMI is suposed to grow payout from $1.68 to $2 at first and then by 10% a year compared to about 5% a year now for KMR.