Wall Street’s major names are firming up their year-end estimates with only seven weeks remaining in 2021.
Morgan Stanley’s top U.S. equities strategist, Mike Wilson, has set a target of 4,400 for the S&P 500 by the end of 2022. This translates to a 6% drop from present levels. Wilson cites a number of variables that are expected to affect the markets in his estimate, including “uncertainty around that expectation goes up considerably given cost pressures, supply concerns, as well as tax and policy uncertainty that is particular to the US.”
It’s still unclear how the market will perform in the future year. Meanwhile, Wall Street experts are identifying the stocks that are likely to attract investor attention. The presence of high-yield dividend payers among the experts’ selections should come as no surprise; these stocks have traditionally been significant components of a defensive portfolio.
We were able to find two such options using the TipRanks database, ‘Strong Buy’ dividend stocks with extensive records of reliability and large yields on the order of 9%. Let’s look at it more closely.
MPLX LP (MPLX)
MPLX, a large-cap master limited partnership firm founded by Marathon Petroleum in 2012 to own and run the parent company’s midstream assets, will be our first stop. Energy infrastructure logistics, such as pipelines and gasoline distribution services, are among these assets. Marathon still owns up to 20.4 percent of MPLX, including a controlling position as a general partner. MPLX stock has been rising in value over the last year, with the stock up 61 percent year to date.
MPLX’s midstream assets span the Rocky Mountains, the Midwest, and the Gulf Coast, and include ports, refineries, and river transportation, as well as pipelines. Above-ground tank farms for crude oil and petroleum products and below-ground ‘cavern storage’ for liquefied natural gas products are examples of storage facilities.
MPLX released its third-quarter results earlier this month. Revenue came in at $2.55 billion, up 13% from the previous quarter and marking the sixth straight quarter of sequential revenue growth. The quarter’s net income was $802 million, up 21% from the $665 million recorded in…