While MLP stock prices might fall, they might still generate positive total returns for investors due to their yield returns. To get a true understanding of an MLP’s performance, it’s important to look at its total returns. In this part, we’ll discuss Enterprise Products Partners (EPD), Magellan Midstream Partners (MMP), and MPLX’s (MPLX) total returns.
Over the past year, Enterprise Products Partners didn’t generate any total returns. Magellan Midstream Partners and MPLX generated negative total returns. The three stocks outperformed the Energy Select Sector SPDR ETF (XLE) during this period. XLE tracks the S&P 500 Index’s energy sector stocks. The SPDR S&P 500 ETF (SPY) generated a negative total return of -5% during the same period.
Over a three-year period, Enterprise Products Partners generated total returns of 37%. Magellan Midstream Partners generated total returns of 14%, while MPLX generated 35% total returns. In comparison, XLE generated total returns of 18%. SPY generated total returns of 46% during this period.
In the past five years, Enterprise Products Partners, Magellan Midstream Partners, and MPLX generated total returns of 12%, 21%, and -7%, respectively. The three stocks outperformed XLE during this period. SPY generated total returns of 66% during the same period. The past five-year period includes the slump in energy commodity prices and the fall in energy sector stocks.
All three of the stocks outperformed the energy sector during the three timeframes discussed above. However, Magellan Midstream Partners underperformed during the three-year period.