Targa Resources Bumps up Quarterly Dividend by 250%

Targa Resources Corp. (NYSE: TRGP) raised its quarterly dividend by 250% to $0.35 per share compared to a prior dividend of $0.10.

Based in Houston, Texas, Targa is a midstream energy infrastructure company providing natural gas and natural gas liquids services. It is one of the largest infrastructure companies in the United States. 

The dividend is payable on February 15 to shareholders on record as of January 31. The annual dividend of $1.40 per share now reflects a dividend yield of 2.5%.

Preferred Dividend of $23.75 Per Series A Share

Targa board also declared a quarterly cash dividend of $23.75 per Series A preferred share for the fourth quarter of 2021. The preferred dividend is payable on February 14 to Series A preferred shareholders on record as of January 31.

Wall Street’s Take

Yesterday, Barclays analyst Theresa Chen increased the price target on Targa Resources to $72 (29.6% upside potential) from $66 and reiterated a Buy rating on the shares.

Chen has a “generally positive outlook for the group in 2022.” However, she expects Q4 results to have “more variability” based on execution during the quarter.

Targa Resources plans to report its fourth quarter results on February 24 before the market opens.

Consensus among analysts is a Strong Buy based on 12 Buys and 1 Hold. The average Targa Resources stock forecast of $68.31 implies 44% upside potential to current levels.

Bloggers Weigh In

TipRanks data shows that financial blogger opinions are 100% Bullish on TRGP stock, compared to a sector average of 74%.

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