Motley Fool analysis favors MPLX over Energy Transfer for dividend safety

Motley Fool

The Motley Fool analysis favors MPLX over Energy Transfer for dividend safety, citing its longer record of annual increases and lower debt. MPLX yields 7.39% versus Energy Transfer’s 6.56%, but its distribution coverage is lower: 1.3x versus about 1.8x.

MPLX has raised its dividend every year since going public in 2012; Energy Transfer cut its dividend by 50% in 2020. MPLX said in its second-quarter report that it expects dividend increases of 12.5% in both 2026 and 2027.

MPLX is sponsored by Marathon Petroleum, and most of its logistics and storage revenue comes from long-term, fee-based commitments with the company. The article says those commitments support steady demand despite broader commodity-price shifts.

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