Key Takeaways
- MPLX expects to raise its distribution 12.5% in both 2026 and 2027, and Enterprise Products Partners says it’s on track for 28 consecutive years of distribution growth in 2026.
- MPLX yields 7.65% at its current rate against 6.3% for Enterprise, and it grew its payout 8% a year from fiscal 2020 to fiscal 2025, against 4% for Enterprise.
- Enterprise’s distributable cash flow covered its distribution 1.7x in fiscal 2025 and is expected to cover it 1.9x in fiscal 2026, against 1.4x and 1.3x for MPLX.
- The thing to watch is whether MPLX’s cash flow per unit grows as fast as its raises in the second half of 2026.
MPLX (MPLX) told investors on Aug. 4 that it expects to raise its distribution 12.5% in both 2026 and 2027, on top of a 7.65% yield.
Enterprise Products Partners (EPD) pays a smaller 6.3% and raises it more slowly. But on its April 28 call, management said it’s “on track for 28 consecutive years of distribution growth in 2026.”
Both are pipeline master limited partnerships, so they pay distributions on units, send holders a K-1, and are judged on how well distributable cash flow covers the payout. So which is the better high-yield dividend stock?
| Metric | Enterprise Products (EPD) | MPLX (MPLX) |
|---|---|---|
| Dividend yield | 6.3% | 7.65% (at the current rate) |
| Annual distribution now (yield at that rate) | $2.24 a unit (6.21%) | $4.31 a unit (7.65%) |
| Distribution growth, fiscal 2020–2025 | 4.0% a year | 8.2% a year |
| Record, in the company’s words | On track for 28 consecutive years of growth in 2026 | 12.5% raises in each of the last 2 years |
| Distributable cash flow coverage, fiscal 2025 | 1.69x | 1.40x |
| Distributable cash flow coverage, fiscal 2026 consensus | 1.91x | 1.29x |
| Net debt/EBITDA (LTM) | 3.2x | 4.0x |
Enterprise has cash to spare
Enterprise just posted a record second quarter. Operational distributable cash flow rose 21% from Q2 2025 to $2.3 billion, covering the Q2 2026 distribution 1.9x. Marine terminal volumes rose 33%. Co-CEO Jim Teague, of Enterprise’s general partner, put that down to “the acute global demand for U.S. energy.”
Analysts expect $4.27 a unit of distributable cash flow in fiscal 2026, up 17% from $3.66 in fiscal 2025. That would lift coverage from 1.69x to 1.91x. The cushion isn’t new, either: since fiscal 2019, coverage has run between 1.63x and 1.84x every year.
Management says distributions will grow “commensurate with operational distributable cash flow per unit growth.” In practice they’ve grown a little slower. Distributions rose 4.0% a year from fiscal 2020 to fiscal 2025, and coverage rose from 1.63x to 1.69x over the same years. On Oct. 8, Enterprise declared $0.56 a unit for the third quarter, the same as the second and 2.8% more than a year earlier.
The risk is that management tied that demand to the Strait of Hormuz closure, and said on its July call that marine terminal volumes normalized in June and July, after a rush in April and May.
MPLX’s raises lean on growth
Where Enterprise keeps a wide cushion, MPLX is putting more of its cash into the distribution. Distributable cash flow rose to $1.45 billion in Q2 2026 from $1.42 billion in Q2 2025. But coverage fell to 1.3x from 1.5x.
The growth is in natural gas and NGLs, where segment adjusted EBITDA rose 11% to $614 million on higher volumes.
Distributable cash flow per unit grew from $3.25 in fiscal 2016 to $5.68 in fiscal 2025. Coverage still fell from 1.62x in fiscal 2022 to 1.40x in fiscal 2025, as distributions rose from $2.96 to $4.07 a unit.
For fiscal 2026, analysts expect distributions of $4.55 a unit, up from $4.07. They expect distributable cash flow of $5.86, up 3% from $5.68, which works out to coverage of 1.29x. That’s right at the target CFO Carl Hagedorn set on the August call: “we continue to target our 1.3x coverage ratio for both ’26 and ’27 and frankly, beyond.” This year’s 12.5% raise is guided, not declared yet: last year’s came on Oct. 28.
The risk is that 12.5% raises at 1.3x coverage leave little room if the second-half EBITDA growth management expects runs late.
So which dividend wins?
MPLX is the better high-yield dividend stock. It pays the bigger check, and it’s growing that check faster while keeping coverage at management’s target.
$10,000 at MPLX’s 7.65% yield pays $765 a year now, against $630 at Enterprise’s 6.3%. At each one’s 5-year rate, MPLX pays about $1,549 in year 10, a 15.5% yield on your cash today, against about $900 from Enterprise. At the pace each raised in fiscal 2025, it’s about $2,251 against about $846. Enterprise’s income never catches up at either pace.
For a high-yield investor, that income gap is what matters most. MPLX’s cushion is thinner, but its distributable cash flow still covers the payout.
Enterprise has the wider margin of safety: forward coverage of 1.91x, net debt at 3.2x EBITDA against 4.0x for MPLX, and a record headed for 28 straight years. Anyone who wants the steadiest check should own it. But for income today and growth in that income, MPLX’s bigger, faster-growing check still edges it.
Of course, holding 1.3x coverage while raising 12.5% a year means MPLX’s distributable cash flow per unit has to grow about as fast as its raises. That’s well above the 3% analysts expect for 2026, so its second-half results matter.
So what is MPLX stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
