Better Buy: Magellan Midstream Partners vs. Kinder Morgan
If you are looking for dividends today, then you've likely taken a gander at the out-of-favor energy sector. Despite recent rallies, it's still a relatively unloved space offering investors high yields. For example, Magellan Midstream Partners (NYSE: MMP) and Kinder Morgan (NYSE: KMI) have yields of 9.3% and 7.1%, respectively. Picking between these two, however, isn't as easy as choosing the higher yield. Here's why.
Of these two midstream players, Kinder Morgan is the larger and more diverse name. For starters it has a market cap of nearly $34 billion, versus Magellan's roughly $10 billion. Then there's the assets it owns, which includes 83,000 miles of pipelines and 147 terminals. It lays claim to being the largest "energy infrastructure firm" in the S&P 500 Index. Magellan's footprint is far more modest, with roughly 12,000 miles of pipes and nearly 80 terminals.
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Source Fool.com
