MPLX for Growth & Income - Oct 15

[dan_s]

I have posted an updated profile for MPLX LP to the EPG Website. It is one of the large-cap midstream companies in our High Yield Income Portfolio.

This one is an MLP, so better suited for a taxable account.
At the current unit price, the annual dividend yield (partially tax-deferred) is approximately 8.8%.
In my opinion, it will be hard to find an investment that generates this much cash flow for your portfolio that is safer. MPLX did not reduce their quarterly dividends during the pandemic and they are now in position to raise them.

> Based on my forecast, there is more than 10% upside in the unit price.
> Distributable Cash Flow (DCF) coverage is over 1.7X.
> They have a well-funded unit buyback program that is actively reducing the number of outstanding units.
> The Company's pre-pandemic goal was to increase cash distribution by 10% each year. It looks like they are back on track to do that after 2021.

The top goals of our High Yield Income Portfolio are high annual dividend yield + safety of principle. Increasing share price is secondary, but this year most of the companies are up more than 30%.