Hundreds of companies pay dividends. Many currently offer higher yields, making them attractive for those seeking passive income. With so many options, it’s easy to miss some appealing opportunities.
MPLX (NYSE: MPLX) and Omega Healthcare Investors (NYSE: OHI) are two high-yielding dividend stocks many investors have overlooked. Here’s why investors won’t want to miss these excellent passive income producers.
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MPLX doesn’t get a lot of attention from investors. It’s not as popular as fellow master limited partnerships (MLPs), Energy Transfer (NYSE: ET) and Enterprise Products Partners (NYSE: EPD). However, it stacks up well compared to those high-yielding rivals:
|
MLP |
Distribution Yield |
Distribution Coverage Ratio |
Leverage Ratio |
|---|---|---|---|
|
Energy Transfer |
6.7% |
2.0x |
4.0x-4.5x |
|
Enterprise Products Partners |
6.4% |
1.7x |
3.0x |
|
MPLX |
7.8% |
1.5x |
3.4x |
Data source: MPLX, Energy Transfer, and Enterprise Products Partners. MLP = master limited partnership.
As the table shows, MPLX has a much higher yield. That’s because it has a lower distribution coverage ratio, largely due to its rapid growth in recent years. It recently increased its distribution by 12.5%, which followed 10% increases in 2023 and 2022. That compares to 5% distribution growth from Enterprise Products Partners over the past year and a 3%-5% annual growth target range from Energy Transfer.
MLPX has plenty more growth coming down the pipeline. The company expects to complete its BANGL pipeline expansion next year, while the Blackcomb and Rio Bravo pipelines should enter service in the second half of 2026. The MLP also has a couple more natural gas processing plants under construction that should enter commercial service over the next two years.
In addition to that visible growth, MPLX has ample financial capacity to continue making accretive acquisitions. It has made two deals this year, including boosting its stake in BANGL. These growth drivers should give it the fuel to continue increasing its high-yielding distribution at a healthy clip. That makes it a great option for those comfortable with investing in MLPs that send their investors a Schedule K-1 federal tax form each year.
Omega Healthcare Investors has quietly been a very enriching investment over the years. The healthcare real estate investment trust (REIT) pays a 6.7%-yielding dividend, which is a lot higher than the average REIT (around 4%). While its dividend growth has stalled in recent years (it hasn’t increased the payout since 2019), it has delivered 7.1% compound annual dividend growth overall since it came public in 2003.
