Archrock (AROC)

The first dividend pick this week is Archrock (AROC), an energy infrastructure company specializing in midstream natural gas compression. The company paid a second-quarter dividend of $0.21 per share, an 11% increase from the prior quarter. At an annualized rate of $0.84 per share, the stock offers a 3.3% dividend yield.

In a recent note, Mizuho analyst Gabriel Moreen reiterated a Buy rating on Archrock and raised his price target to $32 (from $31). By comparison, TipRanks’ AI Analyst maintains an Outperform rating with a $27 target price.

Moreen praised Archrock’s exceptional balance sheet flexibility, which supports dividend growth, share repurchases—such as the $28.8 million buyback in Q2—and higher capital spending. He expects dividends to continue rising in line with recent growth trends, forecasting payouts of $0.83 in 2025, $0.93 in 2026, and $1.02 in 2027, implying YoY growth of 20%, 12%, and 10%, respectively.

The analyst also noted Archrock’s operational momentum, highlighted by its raised adjusted EBITDA guidance for a second straight quarter. Despite some one-off items, he emphasized the company’s strong capex outlook, pointing to healthy demand for new orders.

Moreen ranks No. 112 out of 10,000+ analysts on TipRanks, with a 76% success rate and an average return of 13.9%.

Brookfield Infrastructure Partners (BIP)

Next is Brookfield Infrastructure Partners (BIP), a global infrastructure leader with diversified, long-life assets in utilities, transport, midstream, and data. The company declared a $0.43 per unit quarterly distribution, payable Sept. 29, reflecting 6% YoY growth. At current levels, the stock yields 5.6%.

Jefferies analyst Sam Burwell resumed coverage with a Buy rating and a $35 price target, while TipRanks’ AI Analyst is more cautious, assigning a Neutral rating with a $34 target.

Burwell highlighted BIP’s expansion through three U.S.-focused acquisitions this year: Colonial Pipeline, a rail car leasing venture with GATX, and Hotwire’s fiber-to-home business. Each strengthens BIP’s midstream, transport, and data segments. He also noted that recent divestitures were largely outside North America, simplifying the company’s portfolio.

Although the stock has stagnated in recent years, Burwell expects its upcoming 2025 Investor Day to clarify strategy and showcase growth prospects. He projects FFO growth at ~9% CAGR (excluding capital recycling) and distribution growth of ~6.5% CAGR through 2027.

Burwell ranks No. 848 on TipRanks, with a 64% success rate and 15.7% average return.

Permian Resources (PR)

The third pick is Permian Resources (PR), an independent oil and gas producer with core assets in the Delaware Basin. The company declared a Q3 2025 base dividend of $0.15 per share, payable Sept. 30. Annualized, this equates to $0.60 per share and a 4.3% yield.

Goldman Sachs analyst Neil Mehta reaffirmed a Buy rating with a $17 target price. TipRanks’ AI Analyst also rates the stock Outperform, with a $16.50 target.

Mehta pointed to PR’s operational ramp-up in Q2, following asset acquisitions from APA Corp. and others. New transportation and marketing agreements are expected to generate an additional $50+ million in free cash flow by 2026 versus 2024.

Despite oil price volatility, Mehta remains bullish, citing PR’s cost discipline, balance sheet strength, and capital allocation strategy—including cash buildup, buybacks, and debt reduction. He believes PR’s mix of strategic acquisitions and grassroots development positions it to deliver long-term shareholder value.

Mehta ranks No. 670 on TipRanks, with a 59% success rate and an average return of 9%.

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