Magellan Midstream Partners LP, bearing the ticker symbol MMP, is a master limited partnership that operates pipelines and storage terminals in the Central and Eastern United States.Its assets transport, store, and distribute refined petroleum products and crude and earn a fee-based stream of cash flows.

Magellan Midstream Partners was  discussed in one previous January 4 broadcast as a candidate for my Viking portfolio.

Assets include the country's longest petroleum pipeline network and several crude oil pipelines.

Refined products make up about 70% of operating margin, with the remainder mainly crude-oil pipelines.

In addition, the company owns  marine terminals located along coastal waterways that provide design, installation, construction, testing, operation, replacement, and management of assets to refiners, marketers, and traders.

Magellan Midstream Partners, L.P. was incorporated in 2000 and is headquartered in Tulsa, Oklahoma.

Three key data points gauge Magellan Midstream Partners LP or any dividend-paying firm. They are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

MMP Price

Magellan’s price per share was $55.92 at Monday’s market close. In the past year, MMP’s share price increased $7.47 or about 15.4%.

If MMP stock trades in the range of $45 to $60.00 this next year, its recent $55.92 share price might rise to $57.00 by next year. It could go down about the same amount.

My upside estimate of $1.08 is $0.43 below the median of  annual price targets from 14 analysts tracking  Magellan for brokers.

MMP Dividend

Magellan Midstream Partners Q dividend is declared by YCharts to be $1.048 as of its most recent May 15, 2023 scheduled payout to shareholders of record May 5.

MMP Returns

Adding the $4.19 expected annual dividend to my $1.08 estimated price upside, reveals a $5.27 potential gross gain per share for the coming year.

At Friday’s $55.92 closing price, a little over $1000 would buy 18 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.56 per share.

Subtract that maybe $0.56 brokerage cost from my estimated $5.27 gross gain estimate makes a net amount of $4.71 X 18 shares = $84.78 or a 8.8% net gain.

In the next year our $1K investment in shares of MMP could generate about $75.00 in dividends. Furthermore, a single share of MMP at Monday’s $55.92 price is almost 1.33 times less than the income estimated from $1000.00 invested.

So, by my dogcatcher ideal, this a time to consider MMP shares, based on their dividends for 2023. The dividend from $1k invested is 1.34 times greater than MMP’s single-share price. Consider yourself alerted.

All of the estimates above are speculation based on the past history of investment in shares of Magellan Midstream Partners LP. Only time and money invested in this stock will determine its future market value.

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