75% Dividend Cut at Kinder Morgan
CBJ — As a sign of the times, Kinder Morgan has dropped its dividend 75%, marking the first time the U.S. pipeline giant has cut payouts to shareholders since it has been a publicly-traded company.
Kinder Morgan shares have shed about half their value since the company first warned on Oct. 21 that payouts would slow. Founder Rich Kinder said the smaller payout to investors would allow Kinder Morgan to avoid issuing equity while maintaining its investment grade credit rating.
“We evaluated numerous options, including significant asset sales, but ultimately concluded that these other options were uneconomic to our investors in the long run. This decision was not made lightly,” he said in a statement.