E Daily Stock Pick: Magellan Midstream

This week, I'm looking for the fourth consumer energy representative of four for my Ivy portfolio.

That energy sector includes six industries all related to bringing oil and gas to market. They are: drilling, exploration and production (E&P), equipment and services, integrated, midstream, refining & marketing. (Those six oily and gassy enterprises.)

Today I'm reviewing a large-cap oil and gas midstream firm, named Magellan Midstream Partners LP ticker symbol is MMP.

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 60% of operating margin, with the balance split between crude pipelines and marine terminals.

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

I use three key data points to gauge the value of any dividend equity-like Magellan Midstream Partners, L.P.:

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest.

Those first three primary keys, however, best tell whether a company has made, is making, and will make money.

MMP Price

Magellan's price per share closed at $61.11 yesterday. A year ago its price was $57.62. The price rose $3.49 or over 6% in the past year.

Assuming Magellan's stock trades in the range of $55 to $70 this year, Magellan's recent $61.11 price could rise by $3.89 and go to $64.00 by early-April, 2020.

MMP Dividends

Magellan's most recent Quarterly dividend was $0.9975 declared on January 6th and paid, February 14th.

That $0.9975 Q dividend equates to an annual payout of $3.94 for a yield of 6.53% at yesterday's $61.11 closing price.

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Disclosure: This article was compiled by Rydlun & Co., LLC from data derived from www.ycharts. com; www.finance.yahoo.com; analyst median target price by YCharts

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Craig Richards 1 year ago Member's comment

Interesting find. How did you first come across this stock? $MMP