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Magellan Midstream: Post-split buy


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by Neil Macneale, editor 2-for-1 Stock Split Newsletter

Each month we add one stocs to our model portfolio; each stock is selected from among those that have announced stock splits. Our latest buy is Magellan Midstream (MMP), which I consider a conservative, defensive idea.

The overall market is apparently ignoring troubling signs in the job market and around the globe. I’m not complaining and, because the 2 for 1 portfolio is always fully invested, we have no defensive adjustments.

However, it seems reasonable to expect there may be a correction coming. Our 15.4% year-to-date and 32.9% trailing twelve-month returns look great at the moment but are not sustainable over the long term. Fall is here and it may be time to hunker down.

The three 2 for 1 split announcements in September did not provide a great candidate for addition to the 2 for 1 portfolio this month.

As such, I am going back to last month’s list of split candidates and recommending Magellan Midstream Partners.

Magellan pays a nice dividend (4.2%), has a very low Beta (0.37) and is a solid business providing a vital service needed through good times and bad. MMP has delivered its split shares and is now trading at the split-adjusted price.

Learn more about this financial newsletter at Neil Macneale's 2-for-1 Stock Split Newsletter.

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