Here are three dividend-paying stocks, highlighted by Wall Street's top pros, as tracked by TipRanks, a platform that ranks analysts based on their past performance.
We begin with MPLX LP (MPLX), a diversified, master limited partnership (MLP) that owns and operates midstream energy infrastructure and logistics assets and provides fuel distribution services. The company recently announced an agreement to acquire Northwind Delaware Holdings LLC for about $2.38 billion. The deal is expected to enhance the company's Permian Basin natural gas and natural gas liquids (NGL) value chains.
Meanwhile, MPLX reported distributable cash flow (DCF) of $1.4 billion for the second quarter, enabling the return of $1.1 billion of capital. MPLX offers a current dividend yield of 7.5%.
Recently, Stifel analyst Selman Akyol reaffirmed a buy rating on MPLX stock and increased the price forecast to $60 from $57. The analyst explained that while MPLX's Q2 results fell short of his expectations, he remains encouraged by the company's growth, further bolstered by its recent Northwind acquisition and its gathering and downstream operations. The analyst added that it may take 12 to 18 months to see the full impact as expansions roll out.
"Management remains confident in its ability to grow its distribution at 12.5% for the next several years," said Akyol. The analyst highlighted that MPLX has grown both its EBITDA (earnings before interest, tax, depreciation, and amortization) and DCF at a compounded growth rate of 7% over the last four years. He expects this trend to continue with assets that produce durable cash flows coming online.
Overall, Akyol is bullish on MPLX, thanks to its diverse asset base and the Northwind acquisition. Interestingly, TipRanks' AI Analyst has an "outperform" rating on MPLX with a price target of $55.
Akyol ranks No. 319 among more than 9,900 analysts tracked by TipRanks. His ratings have been profitable 66% of the time, delivering an average return of 10.6%. See MPLX Ownership Structure on TipRanks.