MPLX is a bull holding: fee-based energy transferring, processing and storage make its cash flow less commodity-price dependent and more predictable than oil producers. Distributable cash flow per share is stable and covers distributions, and management targets 12.5% distribution growth through 2027; it yields 7.6%.

Well, the first place I'll look is an energy stock, MPLX. Now, here's an interesting thing. I've said many times before that I'm not a big fan of energy stocks because future cash flows are so heavily dependent on commodity prices, but MPLX is very different.

So, what sets MPLX apart? In fact, MPLX earns fees for transferring, processing, and storing energy, so its cash flow is much less dependent on commodity prices than oil producers.

This makes the source of income much more predictable.

So, when we talk about MLPs like MPLX, the main metric we need to look at is distributable cash flow per share, because that's where their dividends or distributions are paid out.

Again, you can see it's very stable, which wouldn't be possible if they were dependent on the price of the product. You can also see that it is covering those distributions very easily and well, and the growth is expected to be quite good in the future.

And what's really surprising is that we see management actually targeting a distribution growth of 12.5% through 2027. So, they increased distribution by about 12.5% in 2026. They plan to do so in 2027 as well.

So, that's an incredible amount of distribution growth for a stock that's already yielding about 7.58%

and as always, with complete transparency, this is a stock that I added to my portfolio earlier this year. At the time, it was yielding about 8.5% and it has seen very nice share price growth so far in 2026, coupled with an excellent initial dividend yield and extraordinary dividend growth.

This was an incredibly rare opportunity and they are still growing distributions at a healthy rate, even though the yield is still 7.6%.