The distribution payout is rock solid and will not decrease and instead will continue to go up, regardless of which way the stock goes.
You buy these for the payout, not for capital gains. The payout will continue to be the same and increase.
EPD is my largest holding, personally I am perfectly fine if it goes to $20, would be a great chance to load up more at attractive yields.
For anyone paying attention, Kinder did not screw over small shareholders.
Kinder stated over and over again for the past 5 years that KMR was a better investment than KMP. They offered identical ownership stakes, but KMR not only yielded more (due to lower price) but also had other tax advantages due to it's "forced reinvestment" structure.
In the deal KMR owners made out very well. There were no tax consequences related to the sale, only KMP holders got hit with that. Additionally since KMR and KMP had the same ownership and converted the same, but KMR was valued less, KMR saw a bigger premium. Overall KMR owners did 20-30% better that KMP owners based on taxes.
And Kinder telegraphed that this would be the case over and over and over again. Anyone holding KMP deserved what they got IMHO.
Well I do have more faith in RR than Cramer, but that is more of a statement of how little faith I have in Cramer than a positive statement on RR. I still remember the GS sellout well.
Had ~10% in the dark days after GS. Steadily have sold on the way up, have around 12% at today's prices and cashed out about half my shares. Still more than enough to enjoy a short squeeze
That's not the DRIP.
Schwab will reinvest dividends. That is different from the DRIP.
Reinvest dividends just means that schwab will buy the stock for you the day after the dividend shows up. For this schwab uses the price at 10am.
The DRIP is a completely different mechanism. With the DRIP EPD calculates the share purchase price as an average of some days before the dividend date. It then gives a 5% discount and issues stock to you. This stock is then given to your broker INSTEAD of the dividend.
Schwab doesn't offer the DRIP, I've asked many times. You have to transfer your shares to the EPD custodian (Wells Fargo I think). The EPD website has the details.
I sold half my stack in the run up to $30, mostly in upper 20s and low 30s, this is after being a long time holder (5 years) who doubled down after the post GS crash to single digits.
EBIX was my largest holding at $10, and was just too big a percentage after the recent run up.
Still have more shares than I did when RR announced that deal with GS a few years ago. Overall am happy now.