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Magellan Pumps More Cash

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April 24, 2014 – Comments (2) | RELATED TICKERS: MMP

Got a raise today.

Magellan Midstream Partners (MMP) upped the quarterly distribution from 58.5 cents per unit per quarter to 61.25 cents, nearly a 5% boost.  That doesn't sound like a lot, but Magellan typically bumps the payout more than once per year.   The new payout is 21% higher compared to the year-ago quarter and that sounds like a really nice year-over-year raise.

At today's close of $73.48 per unit, the partnership's forward yield is 3.3%.  That's lower than a lot of master limited partnerships, but Magellan's record of increases is tough to complain about.

My favorite part of the press release?  "the 48th distribution increase since its initial public offering in 2001."

Disclosure:  Long MMP

Fool on!  Russ

2 Comments – Post Your Own

#1) On April 24, 2014 at 10:23 PM, awallejr (85.43) wrote:

Grats. More importantly that is tax free unless you reached your cost basis.  Having finished doing my 2013 tax return I really did learn to appreciate mlps.

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#2) On April 25, 2014 at 11:50 AM, rd80 (98.24) wrote:

Thanks for adding the tax free point - as you said, the distributions are considered return of capital so they aren't taxed until the cost basis zeros out.  Of course, lowering the cost basis does make any cap gains on a sale bigger. 

And, we get the joy of waiting on a K-1 form before filing taxes - not a big deal, the tax software I use handles it and since I usually owe money, delaying filing isn't a problem.

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