Dividend 2

Skyy Update

 

Dad: Skyy there are particular company stocks I want you to be aware of.
Skyy: Which ones daddy
Dad: Realty Income(O) and Kinder Morgan(KMI). O has a great business model. People have to pay on a triple lease and money agreement can be 10+ years. Also they will pay you every month.
Skyy: Oh so that’s more money and what about KM?
Dad: Yes more money.

Skyy: yeah!!!!! Can I get a cookie
Dad: Lol. Just wait.
Dad: Lol. But yes KMI is an oil and gas company that charges a fee for transporting oil and gas. No matter how low the prices, they still get paid. Also the founder Richard Kinder owns 243 million shares and is paid 400+ million dollars in dividends. Solid company too.
Skyy: Ok I will try to remember. What about Apple and mommy’s iphone.
Dad: Good skyy Apple is a great company and you do own it. The reasons you do is because they have great cash flow,  they started paying a dividend in 2012 and mommy and everybody in the world has it or loves it!
Skyy: So when do i get paid,
Dad: Lol. Apple and Kinder will pay you in November and like I said realty pays you every month like clockwork or like a social security check.
Skyy: What is social security?

Dad: lol. Dont worry about it. If you play your cards right you won’t need it.
Skyy: Daddy you’re silly. Lol oh and can I have a cookie?
Dad: Wait.

Skyy: Ok

Dad:Just worry about O and KMI and they will take care of you as long as you pamper them with your money.
Skyy: Ok yes and daddy can I have a cookie?

Dad: Yes Skyy you can.😂

-Live Long & Prosper

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4 thoughts on “Skyy Update

  1. Great way to get your child involved at such a young age. I firmly believe in getting youngsters invested as early as possible as they possess the greatest asset of all, time.

  2. Thanks and yes it is the greatest asset of all. Hopefully you read my post about the 4 reasons why children should invest. Once again for stopping by.
    DM

  3. Good luck with your blog and nice to involve the young ones.

    What is your comment to the newly announced huge dividend cut from KMI. The development duing 2015 is not encouraging as the share value has dropped while the dividend has been raised. One can question the rationale behind this from the management not seeing the trouble now necessitating the major dividend cut.
    I have had my eyes on KMI as a possible investment, but has been worried about the development during 2015, and with the latest cut I definately will not enter.
    Love to see your analysis.

  4. Geir,
    Thanks and that 75% dividend cut hurt me real bad! Honestly it was expected since oil has been getting beat up since the end of 2014. I averaged down from 34 to 27 and will hold the shares I have now. They will grow their dividend again and the dividend cut will help pay off some debt. I would see what they do in 2016 and make a new decision from their performance.
    In the end KMI is a great company but they just need to get their stuff together and stay focus.

    Thanks for stopping by and hopefully you will follow along.

    DM

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