This 8.9%-Yielding Dividend Stock Is Growing Surprisingly Fast (and Just Added More Fuel to Its Tank)
(NYSE: MPLX) recently closed the books on 2023. It was another very strong year for the master limited partnership (MLP). The energy midstream company grew its earnings and cash flow at a high-single-digit rate. That's a surprisingly fast pace for a company with such a high yield (recently around 8.9%). Its strong growth gave it the fuel to increase its payout by 10% for the second straight year.
That big-time payout is on a very firm foundation. Meanwhile, the MLP has plenty of fuel to continue increasing it, especially after recently buying out a joint venture partner to enhance its Permian Basin growth strategy. These factors make MPLX a compelling option for those seeking a growing income stream.
MPLX generated nearly $6.3 billion in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2023. That was almost 9% above 2022's total. Meanwhile, the MLP's distributable cash flow rose by over 7% to $5.3 billion. That was enough money to cover the company's big-time payout by a comfy 1.6 times, even after factoring in the 10% increase.
Source Fool.com
MPLX L.P. Stock
MPLX L.P. is currently one of the favorites of our community with 11 Buy predictions and no Sell predictions.
Based on the current price of 11.77 € the target price of 42 € shows a potential of 256.84% for MPLX L.P. which would more than double the current price.
