Archrock Raises Dividend 5% to $0.23, Fifth Hike in Two Years

Archrock's board declared a quarterly dividend of $0.23 a share, up 5% from the first quarter and 10% from a year earlier. The payment, the fifth increase in two years, will go out August 11 to holders of record August 4.

CEO Brad Childers tied the raise to "durable demand" for natural gas compression and Archrock's balance sheet. "Backed by a strong balance sheet and growing cash flow, we remain focused on investing in profitable growth and returning cash to shareholders," he said in the release.

The company provides midstream compression services across the U.S. and sells aftermarket parts for compression equipment. It's based in Houston.

At the new rate, the annualized payout comes to $0.92 a share. Archrock's last dividend increase was in the first quarter, when it raised the payout to $0.219.