This Fast-Growing, High-Yield Stock Just Added Some More Fuel to Keep Its Payout Heading Higher

Crude oil and refined products MLP Magellan Midstream Partners (NYSE: MMP) has been great to income-focused investors over the years. In fact, since going public in 2001, the company has increased its distribution 61 times, delivering 12% compound annual growth in the payout over that time frame. Thanks in part to all those increases, the company yields an enticing 5.1%. Meanwhile, the MLP's current target is to boost its payout by 8% in both 2017 and 2018, with that projection supported by $1 billion of high-return growth projects currently underway.

That said, Magellan's ability to keep growing the distribution beyond next year had been uncertain given the expectation that the bulk of its expansion projects would enter service by the end of 2018. However, after recently announcing two new projects, the company now has more fuel, which could enable it to continue growing its payout for a few more years.

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Source: Fool.com