10 Unstoppable Dividend Stocks to Buy

2. Targa Resources Corp. (NYSE:TRGP)

Year-to-Date Return as of September 9: 67.8%

Targa Resources Corp. (NYSE:TRGP) is a Texas-based midstream energy infrastructure company that mainly delivers natural gas and natural gas liquids in the US. The company saw gains from increased NGL supplies, both from its gathering and processing systems and from third-party sources. Additionally, the recent expansion of its LPG system and better market conditions contributed to its performance. The stock has delivered a 67.8% return to shareholders year-to-date.

Targa Resources Corp. (NYSE:TRGP) expects a substantial increase in free cash flow for 2025, driven by the completion of upcoming expansion projects. As a result, the pipeline stock may have the momentum to sustain its upward trend. In the second quarter of 2024, the company posted an operating cash flow of $808.5 million, up from $622 million in the prior year period.

Targa Resources Corp. (NYSE:TRGP) has consistently maintained its dividend performance. The company has raised its dividend significantly in the past years. In the most recent quarter, it returned $164 million to investors through dividends. The company pays a quarterly dividend of $0.75 per share and has a dividend yield of 2.09%, as of September 9. Its dividend is likely to keep increasing rapidly in the years ahead. The company’s free cash flow is expected to receive a significant boost in 2025, as multiple expansion projects currently underway start operating and capital expenditures decrease.

At the end of June 2024, 39 hedge funds tracked by Insider Monkey owned stakes in Targa Resources Corp. (NYSE:TRGP), up from 38 in the previous quarter. These stakes have a total value of $702 million.