The Pipeline Stock Wall Street Forgot Could Still Pay You $500 a Month. But There's a Catch.
MPLX has a growing dividend, but reaching a $6,000-a-year income from this midstream stock is an expensive proposition.
Dividend seekers often set ambitious targets, but it's important to remember the adage, "It takes money to make money." For investors hoping to earn $500 per month, or $6,000 annually, from pipeline stock MPLX (NYSE: MPLX), the math doesn't seem particularly appealing, and that might be one of the key drawbacks of this midstream stock.
While this pipeline stock offers a high dividend, it necessitates a substantial investment to achieve the desired income level. To put it in perspective, generating $500 a month would require a substantial holding of 1,392.1 shares of MPLX. Although the prospect of a 7.6% dividend yield, more than seven times the S&P 500's yield and significantly higher than the 10-year Treasury yield, is tempting, the necessary investment to attain this income level is a significant hurdle.
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