MPLX (MPLX) is a top dividend stock for investors searching for stability and high yield.

MPLX formed in 2012 as a spinoff from Marathon Petroleum (MPC). Findlay, Ohio-based MPLX manages Marathon's midstream assets, including over 10,000 miles of oil and gas pipelines across the Midwest.

Midstream oil and gas companies like MPLX are known for their consistent cash flows, resulting in lower volatility and generous distributions. Highlighted in Income Investor last year, MPLX has delivered a total return of 27% since then, with the stock up more than 21% year to date.

These returns are in addition to a robust 7.6% annualized dividend yield. The current quarterly dividend of 85 cents per share is likely to be increased next month. That would continue MPLX's streak of annual dividend hikes since its inception in 2012.

The dividend increase may be sizable, given the company's solid earnings growth. MPLX reported earnings of $3.80 per share last year, with estimates of $4.25 for this year and $4.40 for 2025, according to IBD MarketSurge.

Low Volatility Expected For Dividend Stock

MPLX has achieved these impressive returns while maintaining remarkably low volatility. The stock has experienced just 15.5% annualized volatility over the past year. That's lower than traditional defensive stocks like Procter & Gamble (PG) and PepsiCo (PEP), both of which offer lower dividend yields.

MPLX's volatility is expected to decrease further, with one-year implied volatility at just 14.5%. This makes it an attractive option for conservative investors seeking a high yield.

However, it also suggests that significant price gains are unlikely unless the stock continues its gradual upward trend, as it has over the past year.

Due to low volatility, ultraconservative investors can also consider hedging the position by buying a long-term put option. One possibility is the January 2026-expiration, 40-strike put for a cost of around $2 per share. It would limit potential downside while allowing investors to participate in any further upside in the stock.

MPLX shares broke out from a flat base, surpassing a buy point of 43.42 on Sept. 13. The stock remains in a buy zone to 45.59. The stock later found support at its 10-week moving average, according to MarketSurge.

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