This 7.3%-Yielding Dividend Stock Is Making a $715 Million Acquisition to Add More Fuel to Its High-Octane Income Growth Engine

Core Viewpoint - MPLX is a high-yield income investment with a current distribution yield of 7.3% and a compound annual growth rate of over 10% since 2021, having increased its payout every year since going public in 2012 [1][11] Acquisition Details - MPLX has made a $715 million acquisition to buy the remaining 55% interest in the BANGL pipeline system, which currently transports 250,000 barrels of natural gas liquids (NGLs) per day from the Permian Basin to the Gulf Coast [2][3] - The company is expanding the pipeline's capacity to 300,000 barrels per day, expected to be completed in the second half of next year [3] Financial Capacity and Growth - The acquisition is expected to be immediately accretive to cash flow, supporting both near-term income growth and long-term expansion [6] - MPLX has a low leverage ratio of 3.1 times, well below the 4.0x range its cash flows can support, providing financial flexibility for further investments [8] Ongoing Projects - MPLX has a backlog of organic expansion projects, including natural gas processing plants and pipelines, which will enhance cash flows through the end of the decade [6][10] - Key projects include the Secretariat and Harmon Creek III natural gas processing plants, and the Blackcomb and Rio Bravo pipelines, all set to enter service between 2025 and 2029 [10] Investment Outlook - The company has demonstrated strong income growth through organic projects and acquisitions, making it an attractive option for investors seeking a lucrative income stream [11]