• Archrock (NYSE:AROC) has announced that its Board of Directors approved an increase to the company’s quarterly dividend.
• The new dividend rate will apply to the upcoming quarterly payout to Archrock shareholders.

For income focused investors watching energy infrastructure names, Archrock’s higher dividend stands out alongside a share price of $32.35. The stock has shown strong momentum recently, with a 7 day return of 8.4% and a 30 day return of 25.6%. Over the past 3 years, the return has been very large, and over 5 years it is also very large, which helps explain why a dividend decision from the Board may draw extra attention.

Dividend changes can influence how you think about the balance between income and potential price movement in NYSE:AROC. If you already hold the stock or are tracking it, this payout adjustment is a key input for assessing whether the company’s current income profile fits your goals and risk tolerance.

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Quick Assessment

• ⚖️ Price vs Analyst Target: At US$32.35, Archrock is trading roughly in line with the US$32.22 analyst price target range of US$30 to US$35.
• ✅ Simply Wall St Valuation: Simply Wall St’s model suggests the shares trade about 38.6% below its estimate of fair value.
• ✅ Recent Momentum: A 30 day return of about 25.6% shows strong recent share price momentum into this dividend increase.

Check out Simply Wall St's in depth valuation analysis for Archrock.

Key Considerations

• 📊 The higher quarterly dividend increases the cash income you receive at today’s US$32.35 share price, which may make the stock more interesting if you focus on yield.
• 📊 Watch how the payout interacts with earnings of US$1.49 per share, the 21.6x P/E relative to the Energy Services average, and any further moves after the recent 25.6% 30 day return.
• ⚠️ Simply Wall St flags that the 2.72% dividend is not well covered by free cash flow and that Archrock carries a high level of debt, which both matter more when cash returns to shareholders increase.

Dig Deeper

For the full picture including more risks and rewards, check out the complete Archrock analysis.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.