Topic: How To Invest

Your opinion please on Kinder Morgan Energy Partners, as I am looking for a U.S. stock with some income. Thanks.

Article Excerpt

Kinder Morgan Energy Partners, L.P., $62.65, symbol KMP on New York (Shares outstanding: 207.3 million; Market cap: $13.0 billion), is the largest pipeline master limited partnership in the U.S. It owns about 26,000 miles (or 42,000 kilometres) of pipelines and 170 storage terminals. Kinder Morgan will benefit from a continued economic recovery. While its growth prospects are limited, it should be able to steadily increase its distributions by adding small extensions and compression stations to its pipelines. It could also buy smaller pipeline firms, or add new pipelines to move natural gas from new deposits in Texas and other areas to market. The units yield 6.7%. Kinder Morgan is okay to hold, mainly for income. +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ If you hold your U.S. stocks in an RRSP or RRIF, you can avoid paying U.S. withholding taxes on your dividends. However, U.S. limited partnerships like Kinder Morgan are not eligible for RRSPs or RRIFs. So you’ll be subject to a 35% U.S. withholding tax on income…