Targa Resources, Inc. (NYSE:TRGP) Stock to Pay Quarterly Dividend of $1.25

Key Points

• Targa Resources declared a quarterly dividend of $1.25 per share, payable November 17 to shareholders of record on October 30. The annualized dividend is $5.00 per share, yielding approximately 1.7%.
• The dividend appears well covered, with a current payout ratio of 53.7% and an expected forward payout ratio of 40.6%; the company has raised its dividend annually for five consecutive years.
• Analysts remain bullish on TRGP: the stock has a consensus “Buy” rating and an average price target of $318.45, above its reported opening price of $292.93.

Targa Resources, Inc. (NYSE:TRGP - Get Free Report) announced a quarterly dividend on Tuesday, October 13th. Shareholders of record on Friday, October 30th will be paid a dividend of $1.25 per share by the pipeline company on Tuesday, November 17th. This represents a $5.00 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date is Friday, October 30th.

Targa Resources has increased its dividend by an average of 0.3% annually over the last three years and has raised its dividend every year for the last 5 years. Targa Resources has a dividend payout ratio of 53.7% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Targa Resources to earn $12.33 per share next year, which means the company should continue to be able to cover its $5.00 annual dividend with an expected future payout ratio of 40.6%.

Targa Resources Price Performance

Shares of Targa Resources stock opened at $292.93 on Wednesday. The company has a debt-to-equity ratio of 5.01, a quick ratio of 0.68 and a current ratio of 0.77. The firm's 50-day simple moving average is $284.57 and its 200-day simple moving average is $269.31. The firm has a market cap of $62.81 billion, a P/E ratio of 28.00, a price-to-earnings-growth ratio of 1.37 and a beta of 0.80. Targa Resources has a twelve month low of $144.14 and a twelve month high of $307.94.

Targa Resources (NYSE:TRGP - Get Free Report) last posted its earnings results on Thursday, August 6th. The pipeline company reported $3.54 earnings per share for the quarter, topping the consensus estimate of $2.83 by $0.71. The business had revenue of $4.44 billion for the quarter, compared to analyst estimates of $4.90 billion. Targa Resources had a net margin of 13.55% and a return on equity of 69.26%. As a group, research analysts expect that Targa Resources will post 11.30 EPS for the current fiscal year.

Analyst Ratings Changes

A number of brokerages have weighed in on TRGP. Wells Fargo & Company boosted their target price on shares of Targa Resources from $282.00 to $324.00 and gave the stock an "overweight" rating in a research note on Wednesday, September 2nd. BMO Capital Markets raised their price target on shares of Targa Resources from $278.00 to $303.00 and gave the company an "outperform" rating in a report on Friday, July 17th. The Goldman Sachs Group restated a "buy" rating and issued a $322.00 price objective on shares of Targa Resources in a research report on Tuesday. Stifel Nicolaus set a $335.00 price objective on Targa Resources in a report on Friday. Finally, Morgan Stanley increased their price objective on Targa Resources from $343.00 to $359.00 and gave the company an "overweight" rating in a research report on Wednesday, September 16th. One equities research analyst has rated the stock with a Strong Buy rating and twenty-one have issued a Buy rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Buy" and an average target price of $318.45.

Targa Resources Company Profile

Targa Resources Corp. NYSE: TRGP is a Houston-based midstream energy company that owns, operates and develops infrastructure for gathering, processing, transporting, storing and exporting natural gas, natural gas liquids (NGLs), crude oil and refined petroleum products. Its operations connect producers with domestic and international markets across key U.S. energy-producing regions.

The company's assets include natural gas gathering and processing systems, NGL pipelines, fractionation facilities, storage assets and export terminals.

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