1 Stock That's Quietly Paying Investors a Monster 7.9% Dividend Yield
MPLXMPLX(US:MPLX) The Motley Fool·2025-12-05 11:50

Core Viewpoint - MPLX has demonstrated strong financial health and growth potential, making it an attractive high-yield dividend stock for investors [2][10]. Group 1: Dividend Performance - MPLX offers a substantial dividend yield of 7.9%, one of the highest among large-cap stocks in the energy sector [3]. - The company has consistently increased its dividend payouts, including a recent 12.5% hike for 2025 [7]. - Investors who purchased MPLX stock five years ago and reinvested dividends have nearly quadrupled their investment [8]. Group 2: Company Structure and Revenue - MPLX is a midstream energy infrastructure company with a competitive advantage in the U.S. pipeline sector [4]. - Marathon Petroleum, MPLX's largest shareholder, accounted for 49% of its revenue in 2024, providing a stable revenue base through long-term contracts [5]. - MPLX is expected to pay Marathon Petroleum $2.8 billion in annualized dividends this year, incentivizing Marathon to support MPLX's growth [6]. Group 3: Growth Strategy - MPLX has made strategic acquisitions, including a sour gas-treating business for $2.4 billion and a 55% interest in the BANGL pipeline for $715 million, positioning itself to benefit from the data center boom in Texas [10][11]. - The company is divesting noncore assets to raise $1 billion, which will help expand its cash flow base beyond Marathon contracts [12]. - Overall, MPLX invested $3.5 billion in acquisitions in 2025, aimed at driving higher cash flows and supporting future dividend increases [12].

MPLX-1 Stock That's Quietly Paying Investors a Monster 7.9% Dividend Yield - Reportify