5 Best MLP Dividend Stocks To Buy

2. MPLX LP (NYSE:MPLX)

Number of Hedge Fund Holders: 8

Dividend Yield as of March 15: 8.98%

MPLX LP (NYSE:MPLX) is a midstream energy infrastructure company that operates as a subsidiary of Marathon Petroleum Corporation in the United States. The company transports heavy oils, crude oil, natural gas liquids, renewable fuels, chemicals, and feedstock. 

On January 25, MPLX LP (NYSE:MPLX) declared a quarterly dividend of $0.705 per share, in line with previous. The dividend was paid on February 14, for shareholders of record on February 4. MPLX LP (NYSE:MPLX) yields 8.98% as of March 15. 

In its Q4 earnings report, published on February 2, MPLX LP (NYSE:MPLX) posted earnings per share of $0.78, topping market consensus by $0.04. The company’s revenue came in at $2.73 billion, outperforming estimates by $283.32 million. 

Barclays analyst Theresa Chen raised the price target on MPLX LP (NYSE:MPLX) on January 20 to $35 from $34 and kept an Overweight rating on the shares. The analyst has a “generally positive outlook for the group in 2022” and expects “more variability” across refining results in Q4. 

Among the hedge funds tracked by Insider Monkey, 8 funds were bullish on MPLX LP (NYSE:MPLX) at the end of December 2021, with collective stakes amounting to $50.3 million. Chiron Investment Management is the leading shareholder of MPLX LP (NYSE:MPLX), with 539,782 shares worth approximately $16 million.  

Here is what Miller/Howard Investments has to say about MPLX LP (NYSE:MPLX) in its Q1 2021 investor letter:

“Lastly, we added MPLX LP (MPLX) in the with-MLP version. MLPX pays a high dividend and is cheap relative to similar pipeline companies… We increased our weight in MPLX LP (MPLX) which provides exposure to Permian volumes and northeast natural gas volumes. In addition, the company’s FCF yield was above the portfolio’s FCF yield.”