Wednesday, July 18, 2012

The Shrinking Yield At Magellan Midstream

MLPs or Master Limited Partnerships make for interesting investing dilemmas right now.

On one hand, the dividend yields on popular MLPs such as Magellan Midstream Partners, L.P. (MMP) at 4.5% are a lot more lucrative than Treasury yields. The rate on the 10 year at 1.44% is paltry in comparison to this MLP. On the other hand, the yields for most MLPs are at multi year lows from surging stock prices.

Magellan Midstream Partners is a publicly traded partnership that primarily transports, stores and distributes petroleum products. The partnership owns the longest petroleum products pipeline system in the country, with access to more than 40% of the nation's refining capacity, and can store 80 million barrels of petroleum products such as gasoline, diesel fuel and crude oil.

Read the full article at Seeking Alpha.


Disclosure: No positions mentioned. Please review the disclaimer page for more details. 



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