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MPLX LP, Pfizer Showcase Dividend Strength Despite Different Paths

MPLX LP's strategic expansion fuels dividend growth. Pfizer's pipeline and consistent payouts offer hope despite patent expirations.

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1 min read
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MPLX LP, Pfizer Showcase Dividend Strength Despite Different Paths

MPLX LP, an American energy infrastructure company, has shown resilience and growth, with a significant dividend increase over the past decade. Meanwhile, Pfizer, a pharmaceutical giant, faces patent expirations but has a strong pipeline and consistent dividend history.

MPLX LP, formed through the 2015 merger of MarkWest Energy Partners and MPLX LP, has seen its free cash flow of $4.82 per share comfortably cover its current dividend obligation of $3.826 per share. This financial strength is a result of the company's strategic expansion and diversification following its founding and the subsequent merger. MPLX LP's dividend payout has grown by 103.5% over the past 10 years, offering a substantial 7.7% yield at recent prices. The company's distributions, however, are taxed as regular income due to its status as a master limited partnership.

In contrast, Pfizer's COVID-related sales and several blockbuster products are facing patent expirations, which could potentially impact its dividend payment. Despite these challenges, Pfizer has acquired new revenue streams and has a robust development pipeline, which could support future dividend growth. The company offers a 6.4% yield at recent prices, with a consistent history of annual dividend increases since 2009.

Investing in dividend-paying businesses like MPLX LP and Pfizer can provide a steady stream of passive income, helping to maintain a stoic approach during market downturns. While MPLX LP has demonstrated strong financial performance and dividend growth, Pfizer's future depends on its ability to navigate patent expirations and capitalize on its development pipeline.

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