Williams Companies, Inc.
) recently increased its quarterly common stock dividend by 4% to
32.5 cents ($1.30 per share annualized). The new dividend will be
paid on December 24, 2012 to shareholders of record as of
WILLIAMS COS (WMB): Free Stock Analysis
WILLIAMS PTNRS (WPZ): Free Stock Analysis
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The strength of William's business model reflects the company's
commitment toward returning value to shareholders with its strong
cash generation capabilities. Prior to this revision, the company
had increased its quarterly dividend by 1.25 cents per share in
Williams has already paid common stock dividends amounting to
$538.0 million to shareholders up to third quarter of 2012.
The latest dividend hike not only highlights the company's
commitment to create value for shareholders but also underlines
Williams' new policy - a continued 20% annual dividend growth
over the next few years.
We believe that the increase in dividend will boost investor
confidence in the stock, thereby driving share value.
Williams Companies, Inc. is a premier energy infrastructure
provider in North America. The company's core operations include
finding, producing, gathering, processing, and transportation of
natural gas. Boasting a widespread pipeline system, Williams is
one of the largest domestic transporters of natural gas by
Williams divides its business into three segments: Williams
Partners that includes the company's 72% owned master limited
Williams Partners L.P.
), Midstream Canada & Olefins, and Other.
Overall, we believe the company will be able to generate
meaningful earnings and dividend growth in the coming years.
Shares of William Companies currently carry a Zacks #3 Rank,
which translates into a short-term Hold rating. Considering the
fundamentals, we are also maintaining our long-term Neutral
recommendation on the shares.