MPLX for High Yield - April 22

[dan_s]

I like this midstream company and probably should have kept it in our High Yield Income Portfolio, but there did not seem to be enough interest in Master Limited Partnerships (MLP). Current dividend yield is over 8.3% and it is likely to increase quarterly distributions this year. It is now one of Zacks Top Picks.
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The Zacks Rank is known for transforming investment portfolios. In fact, a portfolio of Zacks Rank #1 (Strong Buy) stocks has beaten the market in 26 of the last 32 years, with an average annual return of +25.41%.

Moreover, stocks with a new #1 (Strong Buy) ranking have some of the biggest profit potential, while those that fell to a #4 (Sell) or #5 (Strong Sell) have some of the worst.

Let's take a look at MPLX LP (MPLX), which was added to the Zacks Rank #1 list on April 13, 2024.

Findlay, OH-based MPLX LP is a master limited partnership (MLP) engaged in providing a wide range of midstream energy services, including fuel distribution solutions. The large-cap partnership was created in 2012 to own, operate and develop midstream energy infrastructures and logistics assets, mostly for its parent company Marathon Petroleum Corporation. Notably, Marathon Petroleum holds around 64% of MPLX's outstanding common units.

Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2024, while the Zacks Consensus Estimate has increased $0.08 to $4.11 per share. MPLX also boasts an average earnings surprise of 7.3%.

Earnings are expected to grow 8.2% for the current fiscal year, while revenue is projected to increase 5.2%.

Additionally, MPLX has climbed higher over the past four weeks, gaining 0.3%. The S&P 500 is down 4% in comparison.

Bottom Line

With a #1 (Strong Buy) ranking, positive trend in earnings estimate revisions, and strong market momentum, MPLX LP should be on investors' shortlist.