5 Blue Chip Dividend Stocks with Over 5% Yield

3. Magellan Midstream Partners, L.P. (NYSE:MMP)

Dividend Yield as of July 16: 8.46%

Magellan Midstream Partners, L.P. (NYSE:MMP) is an Oklahoma-based partnership that owns ammonia and petroleum pipelines. In June, the company was upgraded at Goldman Sachs to Buy with a $59 price target. The firm believes that the company will benefit a lot from rising inflation.

In Q1 2022, Magellan Midstream Partners, L.P. (NYSE:MMP) reported $265 million in distributable cash flow and $240 million in free cash flow. The company expects its FCF to reach $1.46 billion in FY22. It currently pays a quarterly dividend of $1.0375 per share. Magellan Midstream Partners, L.P. (NYSE:MMP) has been raising its dividends consecutively for the past 20 years at a CAGR of 4%. The company’s payout ratio based on distributable cash flow stands at 81%. As of July 16, the stock’s dividend yield came in at 8.46%.

At the end of March 2022, 11 hedge funds in Insider Monkey’s database owned stakes in Magellan Midstream Partners, L.P. (NYSE:MMP), valued at $31.5 million. In comparison, 13 hedge funds held positions in the company in the previous quarter, worth $87.3 million.