5 High-Yield Dividend Stocks for Stable Income

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

Dividend Yield as of September 16: 8.05%

Magellan Midstream Partners, L.P. (NYSE:MMP) is a publicly traded partnership that owns ammonia and petroleum pipelines. The company also transports and distributes petroleum products. In June, Goldman Sachs upgraded the stock to Buy and also raised its price target on the stock to $59. The firm appreciated the company’s healthy balance sheet and its capital allocation potential and believes that it can survive inflation due to improvements in its refined product volumes.

Magellan Midstream Partners, L.P. (NYSE:MMP) reported revenue of $788.6 million, showing a 20.6% year-over-year growth. The company’s cash flow remained strong as its operating cash flow for the quarter came in at $297 million, up from $100.4 million in the previous quarter. Its free cash flow also showed an improvement from $55.5 million in the preceding quarter to $255.7 million in Q2 2022. For FY22, Magellan Midstream Partners, L.P. (NYSE:MMP) expects its free cash flow to reach $1.45 billion or $578 million after distributions.

Magellan Midstream Partners, L.P. (NYSE:MMP) currently offers a quarterly dividend of $1.0375 per share and has a yield of 8.05%, as of September 16. The company is one of the most prominent high-yield dividend stocks for stable income as it has been raising its dividends for the past 20 years.

At the end of Q2 2022, 9 hedge funds tracked by Insider Monkey owned stakes in Magellan Midstream Partners, L.P. (NYSE:MMP), compared with 11 in the previous quarter. These stakes are collectively valued at $17.7 million. First Eagle Investment Management was the company’s leading stakeholder in Q2.