7 Reasons High Yielder Targa Resources Partners Is Going Higher

| About: Targa Resources (NGLS)

I continue to be bullish on energy MLP's. They provide very substantial income, cash flow is growing, new technology is continuing to make energy assets much more productive and more and more industries are moving to natural gas from coal. Here is another high yielding play with reasonable valuations to consider for investors looking for dividend yield and growth.

7 Reasons to NGLS is a solid buy for income seeking investors at $42:

  • The stock yields a solid 5.8% and continued to grow its distribution payouts even through the financial crisis.
  • Revenues are showing substantial growth. NGLS had around $7B in revenues in FY2011, and analysts expect over $8.5B in sales in FY2012 and just under $9.6B in revenue in FY2013.
  • The stock has seen net insider buying over the past year.
  • Since it bottomed in the fourth quarter of last year, the stock has shown increasing technical strength and is solidly above its 200 day moving average (See Chart).

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  • It has a low five year projected PEG (1.07) for a stock that yields almost 6%.
  • It has crushed earnings estimates three of the past four quarters and consensus earnings estimates for FY2012 and FY2013 have gone up over the last three months.
  • S&P estimates NGLS will grow earnings at a better than 30% clip over the next three years and has a $47 price target and Buy rating on the stock.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.