Seeking Solid 7% Dividend Yield? RBC Suggests 2 Dividend Stocks to Buy

Core Viewpoint - MPLX is actively streamlining operations and expanding its natural gas assets through significant transactions, including a billion-dollar divestiture and a recent acquisition [1][6]. Group 1: Company Operations - MPLX has entered into a billion-dollar agreement to divest its gathering and processing assets in the Rocky Mountain region, expected to close in Q4 of this year [1]. - The company recently completed the acquisition of Northwind Midstream for $2.375 billion, enhancing its capabilities in sour gas gathering and processing in New Mexico [6]. - MPLX operates a diverse network of assets, including natural gas gathering and processing facilities, oil terminals, and transport facilities [2]. Group 2: Financial Performance - In Q2 2025, MPLX reported $1.4 billion in distributable cash flow, allowing for $1.1 billion in capital returns to shareholders, including a quarterly dividend [7]. - The current dividend is $0.9565 per share, annualizing to $3.83, which provides a forward yield of 7.5% [7]. Group 3: Analyst Outlook - RBC's analyst Elvira Scotto views MPLX as a compelling income play among large-cap MLPs, with a price target of $58, indicating a potential upside of 13% [8]. - The consensus rating for MPLX is Strong Buy, based on 7 reviews, with 6 Buys and 1 Hold, suggesting a 14% gain potential from the current price of $51.28 [8].