MPLX Stock Pays a Hefty 7.4% Dividend Yield. Here's How Much $10,000 Generates in Passive Income Each Year.
The dividend is not only huge -- it's also growing.
MPLX LP, known by the ticker MPLX, has become the focus of attention due to its impressive dividend yield of 7.4%. For those considering a $10,000 investment, this translates to an estimated $740 in passive income annually. Should one invest $25,000, the passive income would increase to $1,850 per year.
MPLX's commitment to growing dividends is evident with its total annual payout of $4.31 per share, up from $2.82 in 2022 and $2.04 in 2016. The company has shown its dedication by raising its payout 19 times consecutively, increasing it by over 3% in its latest increase.
Part of the Marathon Petroleum family, MPLX has proven to be a reliable performer, with average annual returns of 10.9% over the past decade, 19.4% over the last five years, and a remarkable 26.4% in the most recent year. This resilience is attributed to MPLX's role primarily in transporting oil and gas, secured through long-term contracts which provide a certain level of insulation from volatile energy prices.
MPLX's financial health is robust, with a manageable debt load and the capability to meet its dividend obligations. Its stock is currently valued at a price-to-earnings (P/E) ratio of 12, slightly above its five-year average of 11. It's worth noting that MPLX is a master limited partnership (MLP), meaning shareholders must prepare for a K-1 form when tax season approaches.
For those intrigued by MPLX, it is recommended to delve deeper and consider it for a diversified portfolio.
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