MPLX - MPLX LP: A 9.0% Midstream Yield At A Bargain Price
2024-02-15 05:02:49 ET
Summary
- MPLX LP is an attractive income and yield play for dividend investors.
- The midstream firm reported record EBITDA/DCF in FY 2023 with momentum in both core business segments.
- MPLX has a history of good distribution coverage and delivered a distribution growth rate of 10% to unitholders in Q4'23.
- Units are attractively priced.
MPLX LP ( MPLX ) is an attractive income and yield play for dividend investors in 2024. The midstream firm achieved record business results in FY 2023, strong distributable cash flow and managed to deliver an impressive distribution coverage ratio of 1.6X. I believe that MPLX can continue on its record run in FY 2024 and although the midstream firm does not have the size of a midstream firm like Enterprise Products Partners ( EPD ), MPLX is great value, in my opinion: MPLX delivered strong EBITDA growth and raised its distribution by 10% in Q4'23. I expect similar growth for the distribution this year and consider the 9% yield as well-supported and sustainable....
MPLX LP: A 9.0% Midstream Yield At A Bargain Price