As always it depends on when and why one bought. My first KMI purchase was in 2019 so did not own when there were multiple classes/different companies, etc. At the time it looked like a great way to establish a bond like position with a generous yield (7+%) along with the opportunity for price appreciation. Fast forward to today and with the dividend increases the yield is well over 8% per year and the stock has more than doubled. As I'm very positive about their future prospects this will likely be a forever hold for me. I'm always trying to project what is ahead so have no idea as to how back testing helps one identify good companies to make long term investments in but if he works for you then keep at it.

Going back many years I was fortunate to meet a number of stockbrokers who I would describe as "grizzled veterans." They had done well through multiple market cycles. A common theme was that one should try to have a portfolio that provided what they called a "total return." It was very simple...total return was long term stock price appreciation along with a growing dividend. They were trying to identify and buy the same types of stocks that WEB did with the difference being that WEB rarely made any mistakes. They also stressed the importance of receiving dividends during market downturns. Of course that was a time when people were actually investing as opposed to the get rich quick casino like scenario that we have today.

Berkshire Hathaway FAQ

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