These 2 stocks pay 7% dividends: analysts say buy them now

Investors are still chasing artificial intelligence winners, but the market mood is not as simple as the trend suggests.

Growth stocks remain in demand, while inflation concerns, volatile oil prices and uncertainty over Federal Reserve rate cuts continue to keep investors cautious.

The inflation worries had pushed Treasury yields higher, while economists expect the Fed to avoid cutting rates this year.

That backdrop has put dividend stocks back in focus. The appeal is easy to understand: if share prices take time to move, investors still collect income while they wait.

A yield above 7% is especially eye-catching because it can beat many savings accounts and bond products, though the risk is also higher.

MPLX: Pipeline giant backing your income

MPLX is the more established name of the two. The company was formed in 2012 by Marathon Petroleum and owns midstream energy infrastructure across the US.

Its assets include pipelines, natural gas processing, storage, crude oil logistics and refined product distribution. The company says it operates about 10,000 miles of crude oil and light-product pipelines.

That business model is important as pipelines often work less like commodity bets and more like toll roads.

Energy needs to move from one place to another, and midstream companies collect fees for handling that flow.

That can make cash flows more stable than those of exploration and production companies.

MPLX is currently valued at about US$57.3 billion (approx. $100.3 billion), with its units trading near $56.47. The latest quarterly distribution was $1.0765 per unit, or $4.31 annualised, giving the stock a forward yield of about 7.6%.

MPLX also generated US$1.4 billion (approx. $2.5 billion) in distributable cash flow in the first quarter and covered its distribution by 1.3 times, a useful sign that the payout is supported by cash generation.

RBC Capital has maintained a Buy rating on MPLX with a $60 price target, according to recent analyst-tracking data.

TipRanks data shows a broader Moderate Buy consensus, with the average target implying about 8% upside from recent levels. Add the dividend yield, and the total return case becomes easier to understand.

DEC: Natural gas name with bigger upside

Diversified Energy Company is the higher-risk, higher-reward stock in this pair.

The company produces, transports and markets primarily natural gas and natural gas liquids from mature assets in the Appalachian and Central US regions.

Its business is smaller and less conservative than MPLX. That is why the yield and upside look larger.

DEC shares were recently trading at $15.11, giving the company a market value of about US$1.1 billion (approx. $2 billion).

The company declared a 29-cent quarterly dividend for the first quarter of 2026, equal to $1.16 a year, which works out to a yield of roughly 7.7% at that share price.

Stephens has taken a bullish view, initiating coverage with an Overweight rating and a $24 price target.

That target implies about 59% upside from the latest price. When the dividend yield is added, the one-year total return potential approaches 66%.

The broader analyst view is also positive. TipRanks shows a unanimous Strong Buy consensus based on six recent Buy ratings, with an average price target of $23.50.