Looking for Big-Time Income? Check Out This 9.5%-Yielding Dividend Stock.
Usually, when a dividend yield approaches double digits, it's a sign of potential trouble. It often suggests the market doesn't believe the payout is sustainable and that a cut could be forthcoming.
However, a dividend cut isn't in the cards for (NYSE: MPLX). That's evident in the master limited partner's (MLP) financial results. The company's robust cash flows, strong financial profile, and visible growth recently gave it the confidence to boost its payout by 9.7%, pushing its yield to an eye-popping 9.5%. That likely won't be the last raise it provides investors, making it a great option for those seeking a big-time income stream.
MPLX's diversified midstream operations generate lots of steady cash flow backed by fee-based contracts and government-regulated rate structures. The pipeline company produced nearly $1.4 billion in distributable cash flow during the third quarter, up almost 9% year-over-year. That brought its year-to-date total to almost $4 billion, up 6% compared to the year-ago period.
Source Fool.com
MPLX L.P. Stock
MPLX L.P. is currently one of the favorites of our community with 12 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.
