Better Buy: Magellan Midstream Partners vs. NuStar Energy

Units of Magellan Midstream Partners have lost more than 40% of their value this year, which has pushed its distribution yield up into the double digits. On a more positive note, the MLP has a strong balance sheet to help cushion the blow as it has one of the highest investment-grade ratings in the sector. On the other hand, that means it should generate enough free cash flow in the coming years to cover its distribution and limited growth spending with room to spare.