A new portfolio of stocks I started building September 8, at a one stock per week pace for the next year, is named Vista.  I will select its fourth stock this coming weekend. Vista is the sixth portfolio I've built (at a one dividend dog per-week pace) since 2014. Six portfolios = VI for Vista!

Vista is planned to Look Ahead for Outstanding, Proven, Dividend Winners. (Like Aristocrats)

Today we'll review the third of five energy sector stock candidates vying to be that fourth selection for the Vista portfolio.

My subject today is a mid-cap oil and gas midstream firm. It is named, Magellan Midstream Partners LP. Its trading ticker symbol is MMP. This is my first report on Magellan Midstream Partners LP for this Vista dog of the week portfolio. I did review it for Volio, also. 

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 55% 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 dividend equities or funds like Magellan Midstream Partners, L.P.:

(1) Price

(2) Dividends

(3) Returns

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

MMP Price

Magellan's price per share closed at $34.94 yesterday. A year ago its price was $66.27. Price fell $31.33 or just over 47.25% last year.

If Magellan's stock trades in the range of $28 to $48 this next year, its recent $34.94. Price might rise by $5.06 to reach $40.00 by September 30, 2021. 

MMP Dividends

Magellan's most recently declared quarterly dividend was $1.028 paid August 14th. It will total $4.11 annually and yield 11.17% at yesterday's $34.94 closing price.

MMP Gains?

Adding the $4.11 annual anticipated dividend to my $5.06 optimistic estimate of MMP's price upside shows a $9.17 potential gross gain, per share, to be reduced by any costs to trade the shares.  

If we put little over $1,000.00 today in Magellan Midstream Partners LP at $34.94, we would buy 29 shares of MMP stock.

A $10 broker fee paid half at purchase and half at sale could cost us about $0.34 per share.

Subtract that $0.34 brokerage cost from my estimated $9.17 gross gain per share results in a net gain of $8.83 X 29 shares = $256.07 for a 25.5% net gain on a $1.013.26 investment.

So it goes that Magellan Midstream Partners LP shows a possible 25.5% net gain including an 11.77% dividend yield. It could be more, it could be less.   

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 worth.