MPLX Pays More Than Realty Income, With Less Distribution Cushion

MPLX offers a higher cash yield than Realty Income and expects 12.5% distribution increases in both 2026 and 2027. Its second-quarter results support that ambition, but they also show a thinner cushion and rising leverage.

MPLX generated $1.45 billion of distributable cash flow in the quarter and paid a $1.0765 distribution per unit. Coverage was 1.3 times, down from 1.5 times a year earlier. Adjusted EBITDA rose to $1.78 billion, helped by an 11% increase in the natural-gas and NGL segment, while leverage reached 3.7 times from 3.1 times.

Realty Income's second-quarter dividend consumed 74.5% of AFFO, equivalent to roughly 1.34 times coverage. Occupancy was 98.8%, and its portfolio spans more than 15,500 properties and 92 industries. That diversification is broader than MPLX's midstream exposure, though Realty Income is still sensitive to borrowing costs and property values.

MPLX covered its second-quarter distribution 1.3 times, while leverage rose to 3.7 times adjusted EBITDA. New processing and export projects could support the planned increases, but construction, utilization and commodity-linked volumes can disappoint. MPLX also issues a Schedule K-1, adding tax complexity.

MPLX is the stronger fit for investors seeking higher income and faster payout growth. Realty Income is the simpler, more diversified choice with a longer public dividend record. The deciding question is whether MPLX's projects can lift cash flow fast enough to preserve coverage as distributions rise.