Tuesday, October 30, 2012

Magellan Midstream Partners, MMP dividend machine for week of October 29, 2012


Magellan Midstream Partners, MMP is the dividend machine for the week of October 29, 2012.
           

            Magellan Midstream Partners, MMP is the first dividend machine I found for this week, October 29, 2012 and I’ll tell you I sifted through no fewer than forty two companies before finding MMP.   

 

            According to the company’s website, this is a company that likes to reward its investors.
About MMP
Magellan moves the fuel that keeps America going.
Magellan owns the longest refined petroleum products pipeline system in the country. We can tap into more than 40% of the nation’s refining capacity and store over 75 million barrels of petroleum products such as gasoline, diesel fuel and crude oil. With Magellan, you are investing in the strength and stability of an investment-grade company. Our investors benefit from our primarily fee-based business, low-risk growth projects and attractive quarterly cash distributions


The table below presents the fundamentals that show MMP to be a dividend machine.  If the market opens as expected tomorrow, you still have time to buy MMP before the effective dividend date of November 2, 2012.   If you own it by then, you will receive a quarterly dividend of $.485 on November 14, 2012.  Using the closing price on Friday, October 26, 2012 of $42.92, your annualized dividend yield will be 4.65%.  

 

 

DIVIDEND MACHINE
10/30/2012
MagellanMidstreamPtn
MMP
Price when profiled
$42.92
Last 4 Qtrs Earnings
$2.00
Last 4 Qtrs Dividends
$1.70
Current Qtr Dividend
$0.49
Annualized Div Yield
4.52%
No. Years Div Increase
10
Debt/Equity ratio
1.42%



Tomorrow’s opening is going to be interesting especially for the energy industry because refineries have been shut down or slowed down.   But, this dividend machine project uses only the four key criteria identified in the panel to your left. As I analyze last year’s 2011 dividend machine project research, I believe this strategy will prove to be a good income investing technique.  You might consider this master limited partnership as you build your income portfolio.


Very Truly Yours,

TheMoneyMadam