12% distribution growth would be good, but there could be hiccups. If rates rise fast enough and debt needs refinancing at higher rates, div growth could evaporate. The KMI/KMP/KMR entities support a BB (junk) credit rating. Vulnerable to tightening credit causing debt costs to climb more than an investment grade debt issuer. I would be more comfortable if they could edge up their credit rating a bit. That being said, KMI is a top holding of mine.
Of course, volatility helps warrants more than common, so keeping high leverage good for warrant holders in general. I just do not see enough upside to compensate for downside on this warrant. Warrant could be wiped out on rising rates. How much upside is there if things go well? A good stock is not enough to justify the warrant.
Sold my warrants and bought equivalent amount of common. Warrants priced for high volatility. They are safer if you believe KMI at risk of significant drop possible from hedge fund short or other reasons. Otherwise, common seems a better buy. Upside of high dividend stock may be reduced by risk of rising interest rate expectations prior to maturity. IMHO, tapering will not occur for at least 6 months and ST rate increases for longer give that Yellin is inflation dove. However, the market moves in anticipation of rates and this is likely to limit upside. If stock muddles along or has low price appreciation then common a good deal but warrants more likely to lose money.