RE:RE:RE:RE:RE:RE:RE:up 22% Like you I entered between the last payout and before the cut. I bought in for the payout and because I see a path to growth. The balance sheet seems good and capable of making the payout, but they seem like they don't want o hold debt for long.
Also similarly I've watch KPT for a long time amongst other solid, stable payers. I have pulled the trigger in the past on large dividends that don't grow and still hold a trio, but I've been looking away from them and planning on dropping 2 of them in the near future. I've switched to focusing on dividend growers. That said if I seen a stable payer undervalued and a path to where I feel it should be I may jump on one looking for price appreciation and being paid to wait for it.
The main problem with KPT is it's been a value destroyer for nearly 10 years it's been traded, the covid bump wasn't even a low, and the spike after didn't happen when it should have happened. I've looked at it's potential and I do think it's worth more than where it is, I see no reason for it to get to where I feel it should be (14-15 area or like 25-30% upside) and I don't see much potential for growth on investment there.
I do invest on margin, and some of these companies qualify for it, KTP was deleted from qualification in November. The plan for it would be for having a stable 5-7% yeild in one stable company and having a lower payout 2-3% (or no payout) in anouther that has very good growth outlook and combined they would pay your interest rate for holding (4.05% is currently mine) and give you some potential safety while you wait for your thesis to play out. That said you kinda limit your upside potential too as your investment that you have conviction in has to do double the work to move your portfolio upward in a meaningful way. (kind of a 'hedging' or 'coupling' strategy)
Of course someone who depends on income from investments and has a shorter time frame, could use the higher yeild to get by.