Sunday, April 19, 2015

Kinder Morgan and Omega Healthcare Investors Raise Dividends Again

     At work, if I meet expectations and my organization has a good year, I receive a small raise come February. As a dividend investor, as long as I pick the right companies to invest in and sit patiently, I receive regular raises as often as quarterly. After Kinder Morgan and Omega Healthcare Investors were kind enough to give me small raises during the first quarter of 2015, each increasing their respective dividends by a penny, both recently gave me another raise!
     Omega Healthcare Investors boosted their quarterly dividend by another penny, despite cautioning their previous 2015 guidance was too aggressive. Although it took longer than expected to complete the merger with Aviv, management still had the confidence to boost their distribution for the tenth quarter in a row. Having recently added more shares to my position in Omega, I loved management's vote of faith in the combined company.
     Kinder Morgan could very well be the best dividend growth stock in the United States over the next five years. With a dividend yield of 4.4% currently, and management expecting to grow their dividend by 10% per year through 2020, I'm glad to be a part of this juggernaut's flight path. Pipelines such as Kinder have huge competitive advantages in that it would take a new organization a huge amount of time to get the necessary regulatory approvals and money to actually build the infrastructure in order to be able to compete current companies. Ethical objections aside, as long as America needs to transport fuel, I expect Kinder to continue to increase the flow of dividends to its shareholders, just as it sees more oil and natural gas flowing through their pipes.
     The second quarter of 2015 is off to a strong start, and I expect the positive news to continue as Telus and Johnson & Johnson should also soon announce dividend raises. 

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