5 Best MLP Dividend Stocks to Buy

In this article, we discuss 5 best MLP dividend stocks to buy. If you want to read our detailed analysis of MLPs and their performance over the years, go directly to read 10 Best MLP Dividend Stocks to Buy. 

5. Magellan Midstream Partners, L.P. (NYSE:MMP)

Dividend Yield as of October 17: 8.39%

Magellan Midstream Partners, L.P. (NYSE:MMP) is an Oklahoma-based partnership that specializes in ammonia and petroleum pipelines in the Mid-continent oil province. In August, the company announced the expansion of its refined petroleum products pipeline system to El Paso, Texas. It expects to spend over $125 million on the project, which will be completed by 2024.

Magellan Midstream Partners, L.P. (NYSE:MMP) is one of the best dividend stocks on our list as the company has been raising its dividends consistently for the past 20 years. It currently pays a quarterly dividend of $1.0375 per share and has a dividend yield of 8.39%, as of October 17. In Q2 2022, the company reported a strong cash position, with its free cash flow of $649 million, compared with $507 million during the same period last year. For FY22, Magellan Midstream Partners, L.P. (NYSE:MMP) expects to generate a free cash flow of $1.45 billion, or $578 million after distributions.

Ahead of the company’s Q3 results, Barclays reiterated its Equal Weight rating on Magellan Midstream Partners, L.P. (NYSE:MMP) in October.

At the end of Q2 2022, 9 hedge funds tracked by Insider Monkey owned stakes in Magellan Midstream Partners, L.P. (NYSE:MMP), compared with 11 in the previous quarter. These stakes have a total value of over $17.7 million. First Eagle Investment Management was the company’s leading stakeholder in Q2.