Targa Resources, Inc. (NYSE:TRGP) Announces $1.25 Quarterly Dividend

Key Points

• Targa Resources announced a quarterly dividend of $1.25 per share, payable on August 14 to shareholders of record on July 31. The dividend implies an annualized yield of about 1.8%.
• The company has a strong dividend track record, having raised its payout every year for the past 5 years, with a payout ratio of 53.7%. Analysts expect earnings to cover the dividend comfortably next year, with an estimated payout ratio of 40.6%.
• Despite the dividend news, Targa Resources recently missed earnings and revenue estimates for its latest quarter. Still, Wall Street remains constructive on the stock, with a consensus rating of Moderate Buy and an average price target of $285.93.

Targa Resources, Inc. (NYSE:TRGP - Get Free Report) announced a quarterly dividend on Thursday, July 16th. Investors of record on Friday, July 31st will be given a dividend of 1.25 per share by the pipeline company on Friday, August 14th. This represents a c) dividend on an annualized basis and a yield of 1.8%. The ex-dividend date is Friday, July 31st.

Targa Resources has raised its dividend payment 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 payout ratio of 53.7% indicating that its dividend is sufficiently covered by earnings. 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

TRGP stock opened at $280.46 on Friday. Targa Resources has a 52 week low of $144.14 and a 52 week high of $282.80. The company has a quick ratio of 0.62, a current ratio of 0.72 and a debt-to-equity ratio of 5.64. The company has a fifty day simple moving average of $267.11 and a two-hundred day simple moving average of $238.26. The firm has a market capitalization of $60.20 billion, a P/E ratio of 28.36, a price-to-earnings-growth ratio of 1.43 and a beta of 0.71.

Targa Resources (NYSE:TRGP - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The pipeline company reported $2.21 EPS for the quarter, missing analysts' consensus estimates of $2.48 by ($0.27). The business had revenue of $4.09 billion during the quarter, compared to analysts' expectations of $4.68 billion. Targa Resources had a return on equity of 71.00% and a net margin of 12.87%. Analysts anticipate that Targa Resources will post 10.74 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

TRGP has been the subject of several recent research reports. Citigroup reiterated a "buy" rating on shares of Targa Resources in a research report on Wednesday, May 27th. Jefferies Financial Group initiated coverage on Targa Resources in a research report on Thursday, June 18th. They set a "buy" rating and a $314.00 price objective on the stock. Barclays raised their price objective on Targa Resources from $270.00 to $282.00 and gave the company an "overweight" rating in a research note on Monday. UBS Group reissued a "buy" rating and set a $318.00 target price on shares of Targa Resources in a research report on Thursday, July 9th. Finally, Wells Fargo & Company increased their price target on Targa Resources from $264.00 to $270.00 and gave the company an "overweight" rating in a report on Friday, May 8th. Seventeen equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat.com, Targa Resources currently has a consensus rating of "Moderate Buy" and an average target price of $285.93.

About Targa Resources

Targa Resources Corporation NYSE: TRGP is a U.S.-focused midstream energy company that provides gathering, processing, transportation, storage and marketing services for natural gas, natural gas liquids (NGLs), and condensate. Its operations span the midstream value chain, including gas gathering systems that collect production from wells, processing plants that separate and recover NGLs and other hydrocarbons, fractionation and purification facilities that prepare NGLs for market, and pipeline and terminal assets that move and store products for producers, refiners and other customers.

The company operates a network of pipelines, processing plants, fractionators and storage facilities that serve producers and consumers across major U.S.

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