Photo by Martin Adams on Unsplash 

Magellan Midstream Partners LP is known by the ticker symbol MMP and is a member of the energy business sector as an oil and gas midstream facilities operator. This is my second report on Magellan Midstream Partners LP for this Vista portfolio. I last reported on Magellan on September 30, 2020.

Magellan Midstream Partners 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. 

Assets include the country's longest petroleum pipeline network, terminal storage, and several crude oil pipelines. Refined products make about 65% of the operating margin, with the remainder mainly crude-oil pipelines.

Magellan Midstream Partners, L.P. owns and operates crude oil pipelines and storage facilities; and marine terminals located along coastal waterways that provide distribution, storage, blending, inventory management, and additive injection services for refiners, marketers, traders, and other end-users of petroleum products. 

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

Three key data points gauge dividend equities or funds like Magellan Midstream Partners LP:

(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 $49.73 as of Friday's market close. One year ago it's price was $42.03. So MMP price has gained over 18% in the past year. 

Should MMP's stock trade in the range of $34 to $54.00 this next year, its recent $49.73 price might rise by $2.27 to reach $52.00 by June 28, 2022. My estimate is slightly higher than the medan of annual price gains estimated by 20 analysts tracking the stock for brokerage houses.

MMP Dividends

Magellan Midstream Partners LP's most recent quarterly dividend payout of $1.028 was paid May 14, 2021, and equates to  $4.08 annually to yield 8.27% annually based on yesterday's $49.73 closing price. MMP has paid increasing annual dividends for 20 years.

MMP Returns

Adding the $4.08 annual MMP forward-looking dividend to my $2.27 price upside estimate shows a $6.35 potential gross gain, per share, to be reduced by any costs to trade Magellan Midstream shares.  

At yesterday's $49.73 price per share, a little under $1000 would buy 20 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us  $0.50 per share.

Subtract that maybe $0.50 brokerage cost from my estimated $6.35 gross gain per share results in a net gain of $5.85 X 20 shares = $117.00 for an 11.7% net gain on a $994.60 investment.

So it is that  Magellan Midstream Partners LP  shows a possible 11.7% net gain including an 8.27% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in MMP would generate $82.70 in cash dividends. And a single share bought at yesterday's closing price was $49.72! Thus, MMP's share price is nearly half of the dividend income from $1K invested. Thus, according to dogcatcher preference, this is an opportune time to invest in Magellan Midstream Partners LP shares for long-term dividend income.

All of the estimates above are speculation based on the past history of Magellan Midstream Partners LP. Only time and money invested in this stock will determine its true worth.