Marathon Petroleum (MPC) is a Top Dividend Stock Right Now: Should You Buy?

Core Insights - The article emphasizes the importance of dividends for income investors, highlighting that dividends significantly contribute to long-term returns, often exceeding one-third of total returns [2] Company Overview - Marathon Petroleum (MPC), based in Findlay, operates in the Oils-Energy sector and has experienced a share price increase of 29.86% this year [3] - The company currently pays a dividend of $0.91 per share, resulting in a dividend yield of 2.01%, which is lower than the industry average of 3.16% and the S&P 500's yield of 1.52% [3] Dividend Growth - Marathon Petroleum's annualized dividend of $3.64 has increased by 7.5% from the previous year [4] - Over the past five years, the company has raised its dividend three times, achieving an average annual increase of 12.49% [4] - The current payout ratio stands at 57%, indicating that the company distributes 57% of its trailing 12-month earnings per share as dividends [4] Earnings Outlook - For the fiscal year, MPC anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 projected at $9.73 per share, reflecting a year-over-year growth rate of 2.31% [5] Investment Considerations - The article notes that while high-growth firms typically do not offer dividends, established companies like Marathon Petroleum are viewed as attractive dividend options [6] - MPC is characterized as a compelling investment opportunity, not only for its dividend but also due to its strong Zacks Rank of 2 (Buy) [6]