Kinder Morgan (KMI) is one of the oldest investments in my portfolio. I first bought shares when the company traded under a different ticker KMP , Kinder Morgan Partners, before it was reorganized and brought under the single Kinder Morgan Inc. structure. That restructuring changed more than just the ticker symbol; it also changed the tax treatment of its dividends . When it was structured as a master limited partnership (MLP), KMP distributions were partially tax-deferred and came with a K-1 form at tax time. After the transition, Kinder Morgan became a C-corporation , meaning dividends are now taxed like ordinary dividends simpler for reporting, but no longer offering the same tax advantages as MLP distributions. Despite the corporate shift, my core attraction to Kinder Morgan has remained the same: it’s a cash-flow machine . While the stock price has stayed relatively flat for years, the company continues to deliver steady, reliable dividend income , which has always ...
A periodical exploring the art of investing, financial knowledge, and the stories that shape a meaningful life.