High Yield Income Portfolio Update - Dec 3

[dan_s]

Magellan Midstream Partners LP (MMP)

I just finished reviewing the updated profile and forecast/valuation model for MMP. The company's Q3 results beat my forecast.

If safety of principle is your #1 concern and you are OK with 7% annual tax deferred distribution yield, then MMP is for you. The unit price also has approximately 15% upside over the next twelve months.

MMP has increased their quarterly distributions 70 times since going public. DCF coverage is now more than enough to meet their goal of increasing distributions by 5% per year for AT LEAST the next few years. This is a SUPER STRONG midstream MLP that is extremely easy to forecast. New projects coming on-line in 2020 should push revenues well over $3 Billion next year.

The updated profile will be posted to the EPG website this afternoon.