9% Yield, Strong Dividend Coverage, Price Targets Rising

The energy sector has had a good ride so far in 2021, leading all other sectors, with a 33% gain, having gained 4.4% in September. This security yields 9.55% and its distribution coverage rose to 1.73X in Q2 '21. Analysts' price targets are up 6% to 11% since May. Valuations, leverage and performance vs. the midstream Industry are all detailed in this article. Two high-yield options trades for the stock also are offered.

MPLX LP (MPLX) is a diversified, growth-oriented master limited partnership formed in 2012 by MPC to own, operate, develop and acquire midstream energy infrastructure assets. It's engaged in the gathering, processing and transportation of natural gas, the gathering, transportation, fractionation, storage and marketing of NGLs, the transportation, storage and distribution of crude oil and refined petroleum products, as well as refining logistics and fuels distribution services. MPLX provides services in the midstream sector across the hydrocarbon value chain through its Logistics and Storage and Gathering and Processing segments.

Source: Seeking Alpha

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