Over the next decade, few industries will likely produce more top dividend stocks than pipelines. America now gushes oil. Thanks to a wave of new technologies, U.S. energy production has more than doubled over the past decade. Such a boom has pushed the industry’s infrastructure to the limit. The country needs more of everything, from pipes and processing plants to terminals and storage tanks. Owners with assets already in place have made out like bandits.
One of the biggest winners: Magellan Midstream Partners, L.P. (NYSE:MMP). Units have cranked out double-digit annual returns almost like clockwork. And since going public in 2001, the master limited partnership has boosted its payout on 62 occasions. Will its winning streak continue? Let’s dive into the numbers here. At the moment, Magellan’s profits more than cover its distribution. Last year, the partnership generated $947.5 million in distributable cash flow (DCF). Through this period, management dolled out $739.2 million in distributions. That comes out to a payout ratio of 78%. This represents the upper limit of what I consider a safe distribution. Management has still left themselves plenty of room to deal with a bad year or two.
Source: Income Investors
Related Articles:
- The Perfect Dividend Stock
- Charlie Munger's 10 Rules for Investment Success
- Early Warning Signs of a Dividend Cut
- The Best Dividend Stocks In The World
- Never Fall In Love With A Stock
_____________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Do you need more income? Join the crowd. It seems everyone is scouring the landscape these days for decent income investments to beef up the...
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
In bull markets, dividends become more or less irrelevant. When the Dow Jones Industrial Average traded above 14,000 in 2007, very few stoc...
-
While I've invested a decent portion of my portfolio into growth stocks, a significant part of my holdings consists of dividend-paying s...
-
All too often when a cheap stock offers a high dividend yield, it's too good to be true. Perhaps the stock has plunged with good reason,...
-
If it's dividends you're after, there are plenty of top companies to consider, particularly those on the Dow Jones Industrial Averag...
-
Stocks can make for amazing investments, offering better long-term returns than bonds, precious metals, and most other commonly available in...
-
Investors hear about dividend aristocrats all the time. It’s a fantastic thing if a company raises its dividend every year for 25 years runn...
-
To alert investors of stocks that have the highest risk of reducing their current dividend in the future, Simply Safe Dividends created a Di...
-
Anxiety over the European debt crisis and distrust in the markets drove volatility in global stock markets to dizzying heights in 2011. The ...
0 comments
Post a Comment
Post a Comment