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Magellan Midstream Partners LP Message Board

  • lawwman719 lawwman719 Apr 24, 2012 9:54 AM Flag

    DIVIDEND INCREASE

    Raises divi. to 84cents! What a company!!

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    • Re arb
      As to IV board, I am grandfathered in. (if that is a word)

      As to your grandkids. I took 5 day driving trip with my 9 year old grandson and my wife and our daughter flew down and we met for a family reunion. Left from here, and arrived about hour apart. I left one day early and returned one day early and we all got home within an hour. 1400 mile round trip, 4 nights in motels. No issues worth mentioning.

      I do not post often as I am not buying or selling, only taking my dist and spending it. I do play my 401-K and am now in VBTIX (Van Total Bond index) as it has averaged 7% per year for last 10 years.

      My thought is, with just under 3% interest, the only way the total can go up like that is inflow of $ increaing the unit price. If that stabilizes, then they would be paying the 3% only. If money were to flow out of this kind of bond fund, then the unit price would fall but I would leave early in that and put my gains elsewhere. It moves slowly so that should not be an issue. However, that is not likely to happen until the world economy becomes more stable. That could take a while.

      Real surprise in MMP today. Well today for me.

      Hope all is well with your.

      -chart-

    • I think that figure is $0.9425 / qtr. = $3.77 yrly

    • AWESOME!!!

    • Lisa-

      Move on. OK. Chart is a poster that goes back over 10years. Remember all of us can learn something from everyone. Well . . . almost everyone. Anyway I learned a lot from Chart.

      Also lets not turn this into the LINE board. One reply to say it is a company which is organized as a MLP and pays distributions is enough. And except for some technical issues that TTax handles once your basis is zero your distributions are taxed. Don't think we need to deal with those issues here. IV board is all serious posters and better to handle there. OK?

      Don.t mean to be insulting just trying to keep it friendly as usual.

      ARB

    • Beware of some of the Royalty Trusts, newer ones like CHKR and SDT have 20 year lifetimes. NDRO does not - it's open ended.

    • MMP's story is they were able to get BP assets at a steal and the organic growth in MMP is huge.

      KMP says it can grow its distribution 7.6% but when you look at their situation their dcf just barely covers. In reality their growth rate should be much lower to cushion. KMP needs massive dropdowns to maintain that 7.6% rate. MMP can grow double-digits w/o dropdowns and oh yeah they have no GP to pay IDRs.

      The cream of the MLP crop will become more clear when interest rates finally rise. Then, it will become clear that the cream have the common trait of billions of dollars of organic growth as opposed to higher priced acquisition growth.

    • Chart-

      Glad things are good. I am adding to my portfolio and still working part time for Intuit. TTax does just fine but only if you have always entered every number from your K-1. A bit slow but , oh well.

      I'm spending 2 weeks with the grandkids starting today so will be mostly off line sleeping when I can. Their energy level is a lot higher than mine.

      I'm eagerly awaiting MWE and we will see. Also look forward to MMP explanation of how so big of an increase.

      Last, with a basis of negative there are worse thnigs than paying at cap gains rate of 15%, like what congress does or doesn't do next year. Be sure to take a peek at IV board. Are you a member? Lots of good info traded with private messages.

      For Lisa, you need to break out a couple $$ and join there. I made more than my fee in one buy a couple months ago.

      ARB

    • Royalty trusts
      http://en.wikipedia.org/wiki/Royalty_trust
      examples BPT, PBT, HGT, SJT, SBR, CRT, MTR, MARPS, NRT, WHZ, MVO, NDRO, ROYT, CHKR, ECT, PER, SDR, SDT
      The main feature of US royalty trusts is that they are depleting assets (ie. not allowed to add additional reserves by buying property).

      ex-Canroys refers to the companies which used to be Canadian Royalty Trusts but which due to tax law changes mostly converted to regular corporations a few years ago but still mostly pay decent dividends. Canadian Royalty Trusts were always unlike the US ones in that they were actively managed companies which could add to reserves.

      Essentially these are all kind of similar along with E&P MLPs in that they are high yield vehicles involved in oil and gas production. Of course, most MLPs are not E&Ps, so I am only comparing them to the 15 or so E&P MLPs. Of the various structures I think MLPs have the best structure however I invest in all of them.

    • Lisa,
      Forgive my ignorance,but what is royal trusts and ex-Canroys? Thanks.

    • Those are perfectly good choices. And after 5 years you would need to think very carefully before selling them due to the large deferred tax bill you would have to pay. Don't forget that if you reinvested the proceeds, then after tax you would have a significantly smaller amount than their current value to reinvest, so to get the same amount of income you would need the replacement to have a significantly higher yield, meaning higher risk. This is assuming they are in a taxable account of course.

      As for being overweight, my entire taxable portfolio is MLPs, royalty trust and ex-Canroys. Warren Buffett said diversification is for people who don't know what they are doing. Of course, it does raise some specific risks like tax changes, however I don't see that as likely. Otherwise, the markets are pretty highly correlated in recent years, so I don't think diversification across sectors helps you that much in case of market meltdown. So I stick with what is working, meaning MLPs and similar.

      No time to write about other MLPs right now, however you will find me on almost all the MLP message boards (as lisa or liza).

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