A Steady Income Stream And Big Capital Appreciation Over The Years - The Best Of Both Worlds.

| About: Magellan Midstream (MMP)
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With the crisis in Ukraine, many investors are getting market jitters. I remain cool, however. Why? Because there are always opportunities somewhere in the market to make money.

I continue searching for stocks every day. And I'm still finding some winners, even if they may not be in that same risk-on area that was good to investors last year.

What kind of stocks do I own that continue to flourish? Here's one that I have a double in and I would still buy today especially if I were an income investor:

Data from Best Stocks Now App

Magellan Midstream Partners (NYSE:MMP) headquartered in Tulsa, Oklahoma is a $15 billion large-cap energy stock that I own in my clients' growth and income portfolios. MMP specializes in transporting, storing, and distributing refined petroleum products in the USA. It would seem that Keystone's indecision is good for Magellan - it makes their pipeline that much more valuable.


MMP sports a dividend yield of 3.5%, but checkout the capital appreciation that it's kicked up in addition to that dividend yield over the years!

Data from Best Stocks Now App

Over the last ten years, MMP has delivered an average total return of 25% per year to investors while the market has delivered just 5%.

Over the last five years, MMP has returned an average of 44% to investors while the market has returned 22%

Over the last three years, MMP has averaged 38%, more than tripling the returns of the market.

And over the last 12 months, the stock is up over 41%, almost double the market.

When I compare MMP against all the other stocks out there, it gets a performance grade of A. It also gets a momentum grade of B.


MMP may not be a biotech pipeline but it sure has one oil pipeline! And today it's not as easy to build pipelines. In fact, the value of existing pipelines is at a premium right now and MMP is one of the companies that happens to control a few of these key premium pipelines that crisscross America and helps fuel this economy.

Data from Best Stocks Now App

Due to the value of MMP's pipelines, the stock isn't cheap. MMP is currently trading at over 21 times forward earnings and is expected to grow by about 15% per year over the next five years. MMP also has a PEG ratio that's slightly over 1.4.

However when I do the math and extrapolate next year's $3.16 earnings over the next five years, the stock still makes my value grade.

Stock Chart

Before I make any decisions to buy or sell a stock, I have to check the stock chart. I still like what I see:

Magellan Midstream Partners continues to be one of the few companies flourishing in the current environment that is quite challenging to say the least. Out of 3,837 stocks in my Best Stocks Now app database, MMP comes in at #150 and gets a Gunderson stock grade of 'A-'.

Data from Best Stocks Now App

Follow me on Twitter for a change in my opinion on MMP or for more ideas like it.

Data from Best Stocks Now App

Curious what my #1 stock is? Subscribe to my Best Stocks Now app. You can also follow me on Twitter or at my website for a change in opinion of the stock or for information on my management services.

Disclosure: I am long MMP. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.