5 Best MLP Dividend Stocks to Buy

3. MPLX LP (NYSE:MPLX)

Dividend Yield as of October 17: 9.00%

MPLX LP (NYSE:MPLX) is an Ohio-based diversified MLP that owns and operates midstream energy infrastructure and logistics assets. The company is one of the best dividend stocks on our list as it has been raising its dividends consistently for the past eight years, with a five-year CAGR of 5.70%. It currently pays a quarterly dividend of $0.705 per share for a yield of 9.00%, as of October 17.

In the second quarter of 2022, MPLX LP (NYSE:MPLX) reported a strong financial position as it announced a share repurchase program worth $1 billion. The company generated $1.5 billion in operating cash flow, up from $1.1 billion during the same period last year. It returned $750 million to shareholders through dividends and share repurchases, which shows its stable cash flow.

In September, BofA maintained its $34 price target on MPLX LP (NYSE:MPLX), which implies a 10% upside. The firm raised concerns about the company’s execution in the coming quarters.

At the end of June 2022, 7 hedge funds in Insider Monkey’s database owned stakes in MPLX LP (NYSE:MPLX), compared with 8 in the previous quarter. These shares are collectively valued at over $39 million. Citadel Investment Group is the leading stakeholder of the company in Q2.