With Kinder Morgan, I liked the fact that it owned general partner interest in two growing master limited partnerships. This meant that the company was poised to capture much higher distributions growth than the underlying assets, because of valuable incentive distribution rights. I also like the fact that the company’s CEO has almost all of his net worth in Kinder Morgan, which aligns his interests with those of other shareholders.
I am not saying that investors should blindly purchase any stock that they think would deliver strong results in the future. What I am trying to depict in this article is the fact that investors need to have some method of identifying strong candidates for further research. However, they also need to be flexible, and identify opportunities which their strategy might not catch. In addition, I do not believe that investing is a black and white process, which is why experience is the best strategy for the enterprising dividend investor for the long term.
Full Disclosure: Long PM, V, YUM, KO, FDO, KMI