Seeking Alpha

Long-term investors look to MLPs for fat yields and tax advantages, but Jack Hough says history...

Long-term investors look to MLPs for fat yields and tax advantages, but Jack Hough says history suggests short-term traders can score quick holiday gains in MLP leader Kinder Morgan Partners (KMP). KMP soon will publish its 2013 "budget," which stock investors can think of as guidance; in the past, the budget has tended to spark a period of outperformance.
Comments (8)
  • If the short term traders will make money from "the budget news", why don't they make a lot more money in the long term by buy and holding KMI and KMP?? I'm 75 yrs old, bought my first stock at 19 yrs old, learned a few lessons .. buy for the long term ! I retired at 48yr old (semi retired) , and am still having a lot of fun investing now. But you don't get rich TRADING lol!!

     

    long a lot of kmi and some kmp.
    Have fun but smart fun
    dave
    15 Nov 2012, 05:13 PM Reply Like
  • agree with you harnettdj, also long KMI
    15 Nov 2012, 09:13 PM Reply Like
  • Recent retired, both my first stocks at 23yrs old. I have seen the ups and downs of the stock market. I have to agree with prior comment. I've only owned KMP for the past 2yrs, I think it's time to add more to my position.
    KMP has been a good investment, I still think it will be in the future. We need the piplines for transporting fuel no matter what. Had the pleasure to meet KMP employees in Kentucky and Illinois this year,
    both very positive and continue to reinvestment in stock and dividends.
    15 Nov 2012, 11:24 PM Reply Like
  • I like the way you retired guys think. I'm one myself. I run my own portfolio and do just as well as most of the pros. I'm sure you do too.
    16 Nov 2012, 04:02 PM Reply Like
  • Yes but I always reinvested distributions, still do. Which is why I use KMR for the Kinder group.
    2 Dec 2012, 07:53 PM Reply Like
  • Kinder Morgan Announces 2013 Financial Expectations

     

    KMI $1.57 per share for 2013
    KMP $5.28 per unit for 2013, +6% over $4.98 per unit,
    KMR $5.28 per share for 2013
    EPB $2.55 per unit for 2013 +13% over $2.25 per unit.

     

    Kinder said: “We see exceptional growth opportunities across all of KMP’s business segments, including the need to build more midstream infrastructure to move or store oil, gas and liquids from the prolific shale plays in the U.S. and the oilsands in Alberta, along with increasing demand for export coal and CO2,”

     

    http://bit.ly/RyJQwg;highlight=
    4 Dec 2012, 07:38 AM Reply Like
  • That KMI div is a 16% increase.
    for the really long term I have invested more in KMI than KMP.
    KMI has and will increase and have increased their div higher % VALUES than KMP. This most likely will HIGHER Capital Gains for KMI over KMP.

     

    Long both but longer KMI
    I consider KMI a core holding!!
    DAVE
    4 Dec 2012, 10:27 AM Reply Like
  • The 16% increase only relates to KMI's stated dividend goal of $1.35. The 2013 dividend increase is "only" a 12% increase of 2012's expected dividend of $1.40.

     

    Not to be nit-picky. Either percentage increase will probably lead to increased share price, as you pointed out.
    4 Dec 2012, 10:58 AM Reply Like
DJIA (DIA) S&P 500 (SPY)