3 Buy-Rated Dividend Stocks Taking The Lead: PBCT, MMP, CXW
Magellan Midstream Partners L.P (NYSE: MMP) shares currently have a dividend yield of 4.10%. Magellan Midstream Partners, L.P. engages in the transportation, storage, and distribution of petroleum products in the United States. The company has a P/E ratio of 29.78. The average volume for Magellan Midstream Partners L.P has been 507,800 shares per day over the past 30 days. Magellan Midstream Partners L.P has a market cap of $11.9 billion and is part of the energy industry. Shares are up 25% year to date as of the close of trading on Thursday. TheStreet Ratings rates Magellan Midstream Partners L.P as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, expanding profit margins, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Highlights from the ratings report include:
- MAGELLAN MIDSTREAM PRTNRS LP has improved earnings per share by 11.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MAGELLAN MIDSTREAM PRTNRS LP increased its bottom line by earning $1.93 versus $1.83 in the prior year. This year, the market expects an improvement in earnings ($2.50 versus $1.93).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Oil, Gas & Consumable Fuels industry average. The net income increased by 11.5% when compared to the same quarter one year prior, going from $137.82 million to $153.64 million.
- The gross profit margin for MAGELLAN MIDSTREAM PRTNRS LP is rather high; currently it is at 56.58%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 34.61% significantly outperformed against the industry average.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, MAGELLAN MIDSTREAM PRTNRS LP has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full Magellan Midstream Partners L.P Ratings Report.
Check Out Our Best Services for Investors
Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
Check Out Our Best Services for Investors
Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.