Magellan Midstream: Overvalued, But Hold For Solid Dividend Yield

Alpha Beta Capital
1.11K Followers

Summary

  • The company can maintain its quarterly dividend of $1.0475 in the last quarter as well, representing a high dividend yield of 6.53%.
  • The company reported revenue of $877.2 million, which is an increase of 11.23% from $788.6 million in Q2FY22.
  • After comparing the forward P/E ratio of 12.64x with the sector median of 11.50x, we can say that the company is overvalued.

Oil Refinery And Pipeline

imaginima

Investment Thesis

Magellan Midstream Partners (MMP) deals in crude oil and refined petroleum products. The company has a remarkable history of consistent dividend payouts which makes it an attractive stock to hold in a portfolio to reduce the

This article was written by

1.11K Followers
I am a "Techno-Funda" Analyst with more than 5 years of experience in equity research. With my investment strategies, I have successfully managed to earn alpha returns in equity market and I want to share my investment recommendations with all investors.

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.

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