This is a stock that was not on my radar, but came to know about it through some of the dividend blogs that I regularly read. My current portfolio had low exposure to Oil sector anyway and when I noticed that KMP – Kinder Morgan Energy Partners is one of the largest pipeline operator in the US, I was interested in it.
The stock had taken quite a beating lately and was currently trading near its 52-week lows. It had a yield of more than 7% which concerned me a bit. But was willing to take a risk considering this position to be a speculative one.
I purchased 25 shares at $72.95/share. KMP currently pays a dividend of $1.38/share which amounts to a yield of 7.56%. This purchase adds $138.00 to my annual dividends.