Why MPLX Stock Is Suddenly Trending on Wall Street

The energy sector accounts for just 3.3% of the S&P 500, or not even a tenth of the weight commanded in the index by tech stocks, but energy is punching above its weight in garnering headlines in 2026.

Undoubtedly, the war in Iran is a major catalyst behind energy stocks' attention-grabbing ways this year, but there's more to the story. Notably, the buzz around the energy patch isn't confined to the group's largest, most well-known constituents.

A big dividend yield isn't the only reason why MPLX stock is trending on Wall Street. Image source: Getty Images.

Midstream operators, including MPLX (NYSE: MPLX), are in the spotlight, too. Specific to MPLX, which holds dominant positioning in natural gas gathering and processing in the Permian Basin, the pipeline stock is starting to trend on Wall Street, and for multiple reasons at that.

Why Wall Street is examining MPLX stock

MPLX is up by 4% over the past month, flirting with a 52-week high, and it recently released a solid second-quarter earnings report, so it's not surprising Wall Street is paying a bit more attention to this midstream company. Two examples: Goldman Sachs recently reiterated a "buy" rating on MPLX with a $63 price target. That was after Barclays reaffirmed an "overweight" rating on the stock and raised its price target to $63 from $59.

Of course, the pros are pros for various reasons, including the point that they don't focus on surface-level data. MPLX's 7.2% dividend yield is potentially attractive to investors of all stripes, but professionals are, quite literally, paid to dig deeper. They may have liked what they saw in MPLX's second-quarter numbers.

During that period, the midstream company returned $1.1 billion in capital to shareholders, which was easily covered by the $1.5 billion in distributable cash flow (DCF) MPLX generated. That results in a coverage ratio of 1.3x. There's room for improvement in that coverage ratio, but MPLX is pacing ahead of what the pros consider adequate dividend coverage.

Another reason Wall Street may be cozying up to this energy stock is the clarity on spending. MPLX told investors it's upping 2026 spending plans by $500 million to $2.9 billion, adding that it "plans to invest over 90% of organic growth capital toward opportunities" to capitalize on booming demand for natural gas and natural gas liquids (NGLs) infrastructure. That's a sign that MPLX is committed to growth, not just being a high-dividend play. Additionally, the operator's expenditures are skewed toward this year and 2027, implying that 2028 could mark an inflection point, with spending declining while the share price rises.

Plenty of love on Main Street, too

MPLX's aforementioned dividend yield of 7.2% is substantially better than what investors find on the S&P 500, underscoring why the stock is favored by Main Street income investors, too. A recent string of midstream distribution increases may also be contributing to retail market participants' enthusiasm for this pipeline name.

MPLX last announced a dividend hike in October 2025, but when it reported quarterly results, it reiterated a call for 12.5% payout growth this year and in 2027. That's not just growth. It's inflation-thumping dividend growth, which is meaningful because the income from basic equity indexes barely offsets high consumer costs.

Then there's a point all long-term investors can get behind with MPLX. Supported by liquefied natural gas (LNG) and data center needs, U.S. natural gas demand is expected to increase 15% through 2030, potentially stoking upside for this energy income stock.

Todd Shriber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group. The Motley Fool recommends Barclays Plc. The Motley Fool has a disclosure policy.