In this article, we discuss 5 best MLP dividend stocks to buy. If you want to see our discussion on MLP income investing, go directly to 10 Best MLP Dividend Stocks To Buy.
5. Blueknight Energy Partners, L.P. (NASDAQ:BKEP)
Number of Hedge Fund Holders: 4
Dividend Yield as of March 15: 5.18%
Blueknight Energy Partners, L.P. (NASDAQ:BKEP) is a master limited partnership that offers integrated terminalling services for companies dealing in the production and supply of liquid asphalt in the United States. The stock yields 5.18% as of March 15.
On January 25, Blueknight Energy Partners, L.P. (NASDAQ:BKEP) declared a $0.0425 per share quarterly dividend, a 6.3% increase from its prior dividend of $0.04. The dividend was paid on February 14, to shareholders of record as of February 7.
As per the 2022 guidance, published on March 8, Blueknight Energy Partners, L.P. (NASDAQ:BKEP) expects adjusted EBITDA to be almost 2% higher on a year-over-year basis. This will not include any input from the company’s recently undertaken growth projects. The revenue of $30.24 million in Q4 2021 also gained 1.4% as compared to the prior-year quarter.
According to the fourth quarter database of Insider Monkey, 4 hedge funds were bullish on Blueknight Energy Partners, L.P. (NASDAQ:BKEP), compared to 5 funds in the prior quarter. The total stakes held in Blueknight Energy Partners, L.P. (NASDAQ:BKEP) were $17.5 million in Q4. DG Capital Management is the leading shareholder of the company, with roughly 4 million shares worth $13 million.
4. DCP Midstream, LP (NYSE:DCP)
Number of Hedge Fund Holders: 5
Dividend Yield as of March 15: 5.33%
DCP Midstream, LP (NYSE:DCP) is a Colorado-based midstream energy infrastructure company that transports and stores natural gas and natural gas liquids.
On January 25, DCP Midstream (NYSE:DCP) declared a quarterly dividend of $0.39 per share. The dividend was paid on February 14, for shareholders of record on February 4. DCP Midstream, LP (NYSE:DCP)’s dividend yield on March 15 was 5.33%.
Mizuho analyst Gabriel Moreen on February 11 raised the price target on DCP Midstream, LP (NYSE:DCP) to $37 from $35 and kept a Buy rating on the shares. The analyst noted that while DCP Midstream, LP (NYSE:DCP)’s guidance was initially disappointing, commodity upside is “low-hanging”.
A total of 5 hedge funds were bullish on DCP Midstream, LP (NYSE:DCP) in the fourth quarter of 2021, with combined stakes of $16.8 million. Matthew Hulsizer’s PEAK6 Capital Management is the leading shareholder of the company, with 186,023 shares worth $5.1 million.
3. Plains All American Pipeline, L.P. (NASDAQ:PAA)
Number of Hedge Fund Holders: 6
Dividend Yield as of March 15: 6.81%
Plains All American Pipeline, L.P. (NASDAQ:PAA) is a Texas-based company that provides pipeline transportation and storage of crude oil and natural gas liquids in the United States and Canada.
On January 27, Plains All American Pipeline, L.P. (NASDAQ:PAA) declared a $0.18 per share quarterly dividend. The dividend was paid on February 14, to shareholders of record on January 31.
Bernstein analyst Jean Ann Salisbury upgraded Plains All American Pipeline, L.P. (NASDAQ:PAA) on January 25 to Outperform from Market Perform with a $14.50 price target, suggesting 33% upside. The analyst observed that at the end of 2021, the Permian growth was quicker than anticipated and there is a “reasonably high likelihood” that one or two crude pipelines will convert to gas “or something else”. He cited these developments for the upgrade.
A total of 6 hedge funds were bullish on Plains All American Pipeline, L.P. (NASDAQ:PAA) in Q4 2021, compared to 7 funds in the previous quarter. Arrowstreet Capital is the largest shareholder, with 2.1 million shares worth $19.76 million.
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.”
1. Energy Transfer LP (NYSE:ET)
Number of Hedge Fund Holders: 36
Dividend Yield as of March 15: 7.18%
Energy Transfer LP (NYSE:ET) was founded in 1996 and is headquartered in Dallas, Texas, operating as a master limited partnership engaged in natural gas and propane pipeline transport. Energy Transfer LP (NYSE:ET)’s dividend yield on March 15 came in at 7.18%.
On January 25, Energy Transfer LP (NYSE:ET) declared a $0.175 per share quarterly dividend, a 14.8% increase from its prior dividend of $0.1525. The dividend was paid on February 18, for shareholders of record on February 8.
Mizuho analyst Gabriel Moreen raised the price target on Energy Transfer LP (NYSE:ET) on February 18 to $14 from $13 and kept a Buy rating on the shares. The analyst noted that Energy Transfer LP (NYSE:ET) announced strong commercial updates that display growth potential, which is even more significant than its “strong” 2022 EBITDA guidance.
According to the Q4 database of Insider Monkey, 36 hedge funds were bullish on Energy Transfer LP (NYSE:ET), up from 29 funds in the earlier quarter. Abrams Capital Management is the biggest shareholder of the company, with more than 22 million shares worth $182 million.
Miller Value Partners, an investment firm, talked about Energy Transfer L.P. (NYSE:ET) in its Q2 2021 investor letter. Here is what the fund said:
“Energy Transfer LP (ET) rose over the period along with the price of oil climbing 40.59% over the period. The company received positive news that the Dakota Access Pipeline project would not be shut down while the Environmental Impact Statement by the US Army Corps of Engineers is drawn up. Energy Transfer reported strong 1Q results with revenue of $17B surpassing expectations for $11.8B with adjusted earnings before income, taxes, depreciation and amortization (EBITDA) hitting $5.04B ahead of consensus of $2.77B. The company raised full year adjusted EBITDA guidance to $12.9-13.3B from $10.6-11.0B previously, with the increase largely related to the benefits realized from Winter Storm Uri. The company paid down $3.7B in debt during the quarter, using strong cash flow to reduce leverage. The company also announced the issuance of $900M in 6.5% Series H perpetual preferreds with the company using the proceeds to repay debt and for general purposes.”
You can also take a look at 10 LNG Stocks to Watch Amid Ukraine Crisis and 15 Most Valuable UK Companies in the World.
