Right. So, I’ve been looking at dividend stocks. Honestly, the whole thing feels a bit… desperate. Like admitting defeat and accepting that exciting growth is just a myth. But then I stumbled across MPLX (MPLX +0.25%). It yields nearly 8%. Which, let’s be honest, is either brilliant or a disaster waiting to happen. I mean, high yield usually equals high risk, doesn’t it? It’s like attractive men – often complicated. But this… this is actually starting to look… solid.
It’s a master limited partnership, which sounds terrifyingly complex (and involves a Schedule K-1 tax form, which is basically a filing nightmare). But apparently, it has a “fortress financial profile”. A fortress! Like it’s expecting a siege. Still, I’m tentatively optimistic. It’s a pipeline company, which is… reassuringly unglamorous. And they’ve secured growth through 2029. 2029! That’s… a long time. It feels almost irresponsible to plan that far ahead. But okay, fine. I’ll allow it.
Another Year Survived
They recently reported their results, and apparently, they generated $5.8 billion in distributable cash flow last year. Which, frankly, sounds like a number from a different planet. Enough to cover their distribution 1.4 times. 1.4! I’m still trying to figure out if that’s good or bad. They also produced $1 billion in free cash flow, which they then immediately invested. $5.5 billion, in fact. They bought Northwind Midstream for $2.4 billion. Honestly, I spent more than that on avocado toast last year.
Even with all that spending, their leverage ratio is only 3.7 times. Apparently, that’s good. Below 4.0 times, apparently. I’m starting to feel inadequate. And they hiked their distribution by 12.5% last year. 12.5%! I didn’t even get a 12.5% raise at my last job. It’s deeply unfair.
Ample Growth (They Say)
They’re planning to invest another $2.4 billion this year. More pipelines. More expansions. They’re building fractionators near Marathon Petroleum’s refinery. They’re building a Gulf Coast LPG export terminal with Oneok. It’s all very… industrious. And slightly terrifying. It feels like they’re trying to build a whole new infrastructure. Which, okay, maybe that’s a good thing. But it also feels like a lot of pressure.
They’ve also approved the construction of the Secretariat II gas processing plant and the Marcellus Gathering System Expansion. More names I can’t pronounce. More projects with in-service dates in the distant future. It’s all very… long-term. Which, I suppose, is what I’m supposed to be aiming for. But it’s hard to think that far ahead when I’m still trying to figure out what I’m having for dinner.
A High-Octane Income Stream (Hopefully)
So, strong financial profile, visible growth, high-yielding distribution. They expect mid-single-digit earnings growth. Which could support a similar distribution growth rate. It all sounds… promising. I’m still slightly skeptical, of course. But maybe, just maybe, this could be a good investment. Something to hold through at least the end of the decade. A small beacon of stability in a world of chaos.
Units of Cryptocurrency Lost: 12. Hours Spent Watching Charts: 9. Number of Panicked Texts to Friends: 24. Number of Times I’ve Considered Just Putting Everything in a Mattress: 7. But, okay. MPLX. We’ll see.
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2026-02-04 18:12