Despite ongoing tensions in the Middle East, fluctuating oil prices, inflation Despite concerns and President Trump’s unpredictable rhetoric, US stocks have remained remarkably resilient. The S&P 500 has moved back toward record highs as investors continued to pour money into tech and AI-related names. Strong corporate earnings, massive AI infrastructure spending and surprisingly solid economic data have helped offset many of the broader concerns weighing on sentiment.
Whereas growth stock As Wall Street continues to garner plenty of attention as it chases the AI boom, geopolitical uncertainty, elevated valuations and prolonged high interest rate concerns are also driving many investors to seek stable sources of returns along with capital appreciation.
This is where the high yield is dividend stock Come. Those names can provide investors something that many growth-focused stocks can’t always provide: consistent income. And during periods when volatility increases or it becomes difficult to maintain stock gains, those dividend payments can become a larger portion of total portfolio returns.
So then, the question is, which dividend stocks stand out right now? One approach is to focus on high-yielding companies while keeping Wall Street on your side. Using the tipranks databaseWe found two names with dividend yields above 7% that analysts currently view favorably. Let’s find out why.
We’ll start with MPLX, a master limited partnership company. The firm was originally spun off from Marathon Petroleum, and took the parent company’s midstream network and logistics assets public as an independent entity. Today, MPLX is a major player in the midstream sector of the North American hydrocarbon industry, and also has a large-scale fuel distribution business.
MPLX’s primary business lies in its large network of midstream and logistics assets, including pipelines, natural gas processing plants, fractionation facilities and storage infrastructure. Through its MarkWest operations, the company has become one of the larger natural gas processors and NGL fractionators in the United States. MPLX’s asset network spans several major hydrocarbon regions, including the Permian Basin, Appalachia, the Gulf Coast and the Bakken.
We should note that MPLX has been making changes to its network recently. Until last November, MPLX also operated properties in the Rocky Mountains; That month, the company completed the sale of those assets to Harvest Midstream for $1 billion in cash. And last September, the company completed the $2.375 billion purchase of Northwind Midstream, acquiring significant assets in Lee County, New Mexico.
Management is also continuing the expansion of MPLX’s natural gas and NGL infrastructure, particularly in the Permian and Marcellus basins. Current development projects include the expansion of sour gas treatment capacity in the Delaware Basin, additional fractionation infrastructure and the Harmon Creek III processing plant, which is expected to enter service later this year.
To complement its land-based assets, MPLX operates a series of transportation assets on the Tennessee, Ohio and Mississippi Rivers, connecting a network of natural gas gathering and processing facilities and light and heavy oil product storage farms to marine transportation and terminal facilities on the Gulf Coast. Transportation assets rely heavily on large-scale storage operations, and MPLX operates hydrocarbon storage farms both above and below ground.
MPLX is renowned as a ‘dividend winner’. The company has been paying quarterly dividends since 2013 without missing a payment. The last dividend declaration was made on April 28, setting the regular common share dividend at $1.0765. This payment was sent on May 15; At an annualized rate of $4.31 per share, the dividend gives a forward yield of 7.6%.
The company’s earnings for 1Q26, reported in May, showed a top line of $3.04 billion for the quarter. This was down 2.6% year-over-year, and about $55 million below forecasts. On the bottom line, MPLX reported GAAP EPS of 90 cents, down from $1.10 reported a year ago, and 15 cents below expectations.
Nevertheless, payments were well supported by cash generation. During the quarter, MPLX generated $1.408 billion in distributable cash flow and covered its distribution by 1.3x. Free cash flow came to $549 million in the quarter, compared to $641 million in the year-ago period. MPLX ended the quarter with a leverage ratio of 3.7x, a level management considers comfortable for the business.
For Truist analyst Gabriel Daoud, the important thing here is MPLX’s ability to maintain efficient operations. He writes about the company, “While there were many moving parts in 1Q26, including a full quarter without the Rockies assets and the impact of winter weather, our view is that progress on the Northwind/Titan facility and construction of other pipelines remains the story of ’26e. While there was nothing new under the sun, all projects appear to be on schedule, and MPLX is executing on the return of its capital while building the base business in the outside years. “I’m pushing myself to do that.”
These comments support the analyst’s Buy rating on MPLX, while his $66 price target points to the potential for a one-year upside of about 17%. Add in the dividend yield, and this stock could deliver a total return of more than 24% in a year. (To see Dawood’s track record, Click here)
Overall, there are 9 recent analyst reviews on record for MPLX, and a 6 to 3 split between Buy and Hold gives the stock a Moderate Buy consensus rating. Shares are trading at $56.47 and the average price target, $61.23, suggests a gain of about 8% by this time next year. (Look MPLX Stock Forecast)
Next is Diversified Energy Company, an energy producer focused on mature natural gas assets in Appalachia and the central United States. The company operates in several major hydrocarbon producing regions, including Pennsylvania, West Virginia, Ohio, Texas, Oklahoma and Louisiana. Given that footprint, it’s no surprise that natural gas remains at the core of Diversified’s business and accounts for a large portion of its production mix. That operating base continued to deliver meaningful output in the first quarter of this year, when the company recorded average daily production of approximately 200 MBoepd.
Diversified also has extensive midstream operations, including more than 17,000 miles of pipelines for both gathering and transporting hydrocarbon products. The combination of extensive upstream and midstream networks gives the company an integrated set of assets that allows the company to live up to its name.
The company is also active in marketing natural gas, an important source of energy in the US economy. Natural gas is the cleanest burning of the fossil fuels and is popular in a wide range of uses, from home heating to burning industrial boilers to fueling electric power plants. Diversified has 261 actively managed sales points for natural gas in 25 active markets. The company markets approximately 1.2 Bcf of natural gas per day.
Diversified is also expanding through acquisitions. In the past year, the company integrated the Maverick, Canvas and Sheridan transactions, increasing both production volumes and liquids exposure. Earlier this month, Diversified also announced the $1.175 billion acquisition of certain Camino Natural Resources assets in Oklahoma through a partnership with Carlyle, further expanding the company’s Anadarko Basin footprint and future drilling inventory.
On the 6th of this month, Diversified announced a 29-percent common share dividend, to be paid on September 30. The dividend is annualized at $1.16 per share and gives a forward yield of 7.5%. The company has been paying dividends since 2018 and has kept the payout steady at its current rate for the last 10 declarations.
In its 1Q26 financial release, the company showed a top line of $556 million in total commodity revenues. This was up 68% from the $329 million reported in 1Q25. The company reported a net loss of $161 million in the quarter, primarily due to unrealized and non-cash derivative losses related to hedging activity. Despite this, adjusted free cash flow increased to $160 million.
The stock has caught the attention of Stephens analyst Mike Scialla, who likes the business model, strong portfolio, and high likelihood of the company maintaining its dividend. Summarizing his thoughts here, Scialla writes, “With a differentiated business model focused on the acquisition and optimization of proven developed producing assets, the company is well-positioned to generate consistent, double-digit growth and strong returns. Portfolio optimization through JVs with operating partners or divestitures in E&P companies looking to drill inventory could boost cash flows. We repurchase shares while paying the highest fixed dividend yield in our natural gas group. Expect DEC to continue.”
The Stephens analyst has an Overweight (i.e., Buy) rating on DEC shares with a $24 price target, suggesting an upside of ~59% for the year ahead. Add in the dividend yield, and this stock’s one-year return potential reaches 66%. (To see Scialla’s track record, Click here)
Overall, DEC has recently earned a unanimous Strong Buy consensus rating on Wall Street, based on 6 positive analyst reviews. Shares are trading at $15.11, and their $23.50 average target price suggests an upside of 55.5% on a one-year horizon. (Look DEC Stock Forecast)
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is to be used for informational purposes only. It is very important to do your analysis before making any investment.
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