Enterprise Products Partners L.P. Message Board

Fatty,

Do you get the fractional shares in the form of shares or in cash? I would prefer to have the shares, but my brokerage gives me the fractional part in cash.

KMR does not issue a 1099, so there is no record of this " payment ".

How do I report this cash on a tax return anyway? capital gain? Interest? Qualified Dividend? What?

Do brokerages allow us to sell fractional shares? Most holders after some time will have a fractional share up to 3 decimal places.

What is your opinion of the company's financial strength and sustainability of RPT dividend? As long as they have the ability to sustain the dividend of RPT common shares, the preferred holders should not be worried.

So, do you think that this is the beginning stages of a short squeeze? Maybe the recent Barrons and Hedgeyes articles were attacks that the shorts depended on, and they failed.

KYN-D called. Redemption price is $25.26 inclusive of accrued dividends.

The new series KYN-F is at 3.5% too low for consideration unless it trades for around $24.50 or so.

KYN just announced issuance of a new series of MRPS KYN-F, paying only 3.5%. They have stated the proceeds will be used to redeem KYN-D.

So, expect the redemption call to be May 10 or May 11, as that is the first day they can buy the shares back for $25.125. It is likely they will give the usual 30 day notice, so we can expect one more dividend ( payable May 1st ), followed by about 10 days of accrued interest.

Expected proceeds are thus $25.125 + $0.103 ( May div ) + $0.033 ( accrued int ) = $25.26

So, if we buy now at $25.23 ( closing price on Friday ) or better, one could conceivably make a few dollars, guaranteed.

example, buy 1000 at $25.23 + $10 comm = $25,240 cost basis.

proceeds upon redemption = $25,125 + $33 ( accrued int ) + $103 ( May div ) = $25,261 and you make a profit of $21 guaranteed. not much, but may be of interest to some.

The guys above have provided great info. No need to add anything further.

David, this message board is so thoroughly spammed out, you will not get any sensible or rational answers here. Go to another board, especially one that is moderated.

Since the dividend is in the form of additional stock, my initial investment is now dividend over a greater number of shares, so the cost basis per share goes down.

When I sell, any resulting gain is thus considered a capital gain - either ST or LT. But this does nto matter, as the gain will offset carry over capital losses from previous years.

So my advantage is that I do not pay tax on the distribution.

Thank you! So it is doing what KMR does, paying in the form of more shares.
I have some carry forward Cap Losses, so might buy EEQ to try and offset some of it.