Boston, MA 10/16/2014 (wallstreetpr) – Kinder Morgan Inc (NYSE:KMI) disclosed that it expects to surpass its projected annual dividend rate of $1.72 a share in the current year 2014. Its Board of Directors has also declared an increase of 7% in quarterly dividend to 44 cents a share from 41 cents a share paid in the year-ago quarter.
Payment Of Dividend
According to Kinder Morgan Inc (NYSE:KMI)’s statement, October 31 has been fixed as the record date to determine the eligible shareholders to get the dividend. It would pay a dividend on November 17. The stock would become ex-dividend from October 29. On an annualized basis, the dividend worked out to $1.76 a share, up from $1.64 a share last year same period.
Kinder Morgan Inc (NYSE:KMI) said that the latest dividend would involve the payment of $435 million, higher than $424 million recorded in the same period previous year. The company stated that it was on track to either meet or surpass its budgeted $1.78 billion towards dividend payment for the current year. For the nine-month period of the current year, the dividend payment worked out to $1.34 billion, which was 9% more than $1.23 billion recorded in the same period lf last year.
Dividend Outlook
Kinder Morgan Inc (NYSE:KMI) indicated that it planned to increase its dividend rate by 16% to $2.00 a share for the next year 2015 based on the estimated dividend rate of $1.72 a share for the current year. It indicated that the process of completing El Paso Pipeline Partners, Kinder Morgan Management and Kinder Morgan Energy Partners acquisition for about $70 billion was proceeding. Once the transaction was completed, it would be able to pay the planned dividend next year.
Dividend Yield
The latest quarterly dividend represented a yield of 5.00%. The projected ten-year dividend yield represented 13.69%. While the current dividend payout ratio was 145%, average dividend growth rate for a three-year period worked out to 73.16%.
The growth rate was significantly higher because its dividend rate jumped from 14 cents a share in April 2011 to 30 cents a share in the next quarter itself, according to Nasdaq data. The dividend rate was 35 cents a share in July 2012 and 40 cents a share in July 2013.
