Targa Resources

Targa Resources is one of the largest midstream energy companies in the United States, gathering, processing and transporting natural gas and natural gas liquids, with a strong footprint in the prolific Permian Basin. Its fee-based infrastructure earns money from volumes moving through its systems rather than directly from commodity prices, giving it more stable cash flows than producers. After restructuring earlier in the last decade, Targa has rebuilt and steadily raised its dividend, supported by growing throughput and expanding pipelines. The current yield is modest because the shares have appreciated, but the payout is backed by rising cash generation. The profile is that of a growing income stream tied to energy infrastructure.