8% Yielding Magellan Midstream Is A Dream Recession Retirement Strong Buy

Dividend Sensei
Investing Group

Summary

  • The 2023 recession is likely to be mild, but future recessions might not be.
  • High-yield blue-chips like Magellan are a great way to generate excellent yield while riding out market storms.
  • MMP's 21-year dividend growth streak, the highest credit rating in the industry, and the industry-leading profitability makes it the highest quality midstream on Wall Street.
  • MMP's focus on disciplined spending makes it a free-cash flow self funding midstream, the gold standard of safety in the industry.
  • MMP yields a very safe 8%, is growing 5.5%, and offers 13.3% long-term returns. It could deliver 20% annual returns over the next two years, and 130% returns over the next five. It's a potentially strong buy for anyone comfortable with the risk profile.
  • Looking for a helping hand in the market? Members of The Dividend Kings get exclusive ideas and guidance to navigate any climate. Learn More »

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A version of this article was originally published on Dividend Kings on Tuesday, January 31st, 2023.

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The 2023 recession, it's on everyone's mind.

Will we get a recession or a soft landing?

Will earnings grow or contract?

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This article was written by

Dividend Sensei
115.74K Followers

Dividend Sensei (Adam Galas) is an Army veteran and stock analyst with 20+ years of market experience.

He is a founding author of the investing group The Dividend Kings which focuses on helping investors safeguard and grow their money in all market conditions through the highest-quality dividend investments. Dividend Sensei and the team of analysts (Brad Thomas, Justin Law, Nicholas Ward, Chuck Carnevale, and Sebastian Wolf) help members invest more intelligently in dividend stocks. Features include: 13 model portfolios, buy ideas, company research reports, and a thriving chat community for readers looking to learn how to invest more intelligently in dividend stocks. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

DK owns MMP in our portfolios.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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