Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



3 Growing Dividends to Energize Your Portfolio

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Investors have plenty of important information to cull as we dive headlong into a barrage of fourth-quarter earnings announcements for American energy companies -- not the least of which are dividend and distribution increases.

Some energy companies only increase their dividend once a year, while others may give it a gentle boost of 1% to 2% every quarter. The three companies we're looking at today, however, all boosted their dividends by 4% or more on a sequential basis, and they are today's three candidates for your portfolio's next yield engine.

1. Targa Resources Corp (NYSE: TRGP  )
Targa Resources is the general partner of Targa Resources Partners (NYSE: NGLS  ) , the master limited partnership that owns and operates all the assets in the Targa family. As a general partner, it is privy to a chunk of the MLP's cash every quarter in the form of incentive distribution rights. Targa is one of the most important players in the natural gas liquids business, with some natural gas and crude-oil services thrown in for good measure.

Targa Resources increased its dividend 7% quarter over quarter, and an outstanding 33% year over year. The third quarter was a record quarter for Targa, and investors are hoping for more of the same when the company reports fourth quarter results on Feb. 13.

2. Tallgrass Energy Partners LP (NYSE: TEP  )
Tallgrass only went public last year, but it has wasted very little time ratcheting up its distribution. The fledgling partnership increased its distribution 5.9% over last quarter's payout. It has yet to put a full year of public trading on the books, but this quarterly distribution of $0.3150 per unit is 9.6% higher than its minimum quarterly distribution.

Tallgrass Energy's assets are concentrated in the Niobrara Shale and the Mississippi Lime formation and consist of 5,100 miles of natural gas pipeline, a natural gas storage facility, two natural gas processing plants, and a natural gas treating facility.

3. Hi-Crush Partners LP (NYSE: HCLP  )
Hi-Crush is in the frac sand game, making it a crucial component of America's energy renaissance. The partnership produces and markets proppant used in the hydraulic fracturing of oil and gas wells. It was the second-best performing MLP of 2013, posting a total return of 168%.

Hi-Crush increased its distribution 4% over the prior quarter, marking its second straight quarterly distribution increase. It is relatively new to the street, debuting in August of 2012, and had only paid out its minimum quarterly distribution for every quarter prior to 2013's Q3 and Q4.

Bottom line
Distribution growth should never be the only reason you buy a stock, but it can be a good indicator of a very strong business, especially when the growth pattern bears out over the course of several years.

3 more great dividend ideas
If you're looking for some long-term investing ideas, you're invited to check out The Motley Fool's brand-new special report, "The 3 Dow Stocks Dividend Investors Need." It's absolutely free, so simply click here now and get your copy today.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2810368, ~/Articles/ArticleHandler.aspx, 8/29/2015 11:38:37 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Aimee Duffy

Contributing to since 2011.

Today's Market

updated 1 day ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 4:02 PM
HCLP $16.05 Up +1.44 +9.86%
NGLS $29.92 Up +1.02 +3.53%
Targa Resources Pa… CAPS Rating: ****
TEP $47.00 Up +1.43 +3.14%
Tallgrass Energy P… CAPS Rating: **
TRGP $65.96 Up +2.02 +3.16%
Targa Resources Co… CAPS Rating: **