This 7.5%-Yielding Dividend Is Safe and Secure
A high dividend yield can sometimes indicate that the payout is at high risk of being reduced. However, that's not the case with the 7.5%-yielding distribution offered by (NYSE: MPLX). The master limited partnership (MLP) supports its high-yielding payout with very stable cash flow. It also has a rock-solid financial profile.
The midstream company's strong financial position enables it to invest heavily in expanding its operations. This gives it the fuel to increase its high-yielding payout. That growing income stream makes the MLP attractive to those seeking a safe and secure passive income stream as long as they're comfortable receiving a Schedule K-1 federal tax form each year.
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Source Fool.com
