Targa Resources Partners

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Another MLP boasting a dividend increase last week is Targa Resources Partners ( NGLS), a natural gas producer that currently sports a 6.45% yield thanks to last week's 2.2% dividend increase. The move brings Targa's payout to 57 cents per share.

Targa sports some very attractive attributes from an income generation standpoint. For starters, the company's MLP status means that the firm is paying out the vast majority of its income to unit holders each quarter, a feature that reduces investors' tax implications. Targa also has solidified its cash flows, giving the company a more predictable income stream in 2011.

But the really attractive attribute about this stock is its exposure to natural gas right now. As a commodity, natural gas prices have trailed other fuel sources, making them comparatively more attractive. Wall Street has been buying into that argument of late, pushing up the value of Targa's natural gas gathering operations - and in the short-term, the spread that the company earns on processing it. A healthy balance sheet should help keep Targa's dividend running smoothly for the foreseeable future.

For the rest of this week's dividend stocks, check out the Dividend Stocks for the Week portfolio on Stockpickr.

And if you haven't already done so, join Stockpickr today to create your own dividend portfolio.

-- Written by Jonas Elmerraji in Baltimore.    


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At the time of publication, Elmerraji had no positions in stocks mentioned.

Jonas Elmerraji is the editor and portfolio manager of the Rhino Stock Report, a free investment advisory that returned 15% in 2008. He is a contributor to numerous financial outlets, including Forbes and Investopedia, and has been featured in Investor's Business Daily, in Consumer's Digest and on MSNBC.com.

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