Better Buy: Magellan Midstream Partners vs. NuStar Energy
NuStar Energy (NYSE: NS) is offering a generous 8.9% yield today. Magellan Midstream Partners' (NYSE: MMP) yield is 6.1%, still notable but a lot lower. These two midstream oil and gas players will definitely entice dividend-focused investors. But dig a little deeper before you decide, because there's more to look at than just the distribution yields. Here are some key facts you need to know before you buy either of these master limited partnerships.
Magellan covers its distribution by around 1.2 times. That's a long-term target and is a very healthy number in the midstream space, providing ample safety. NuStar is projecting its distribution coverage to be around 1.3 to 1.4 times in 2019. That's an even better number, but it comes with a caveat.
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Source Fool.com
