North American energy firm,
Williams Companies Inc.
) recently increased its quarterly common stock dividend by 4% to
35.25 cents. The new dividend will be paid on Jun 24, 2012 to
shareholders of record as of Jun 7.
The dividend hike reflects continued strong performance by
Williams, backed by solid operating results, good investments and
a diligent execution of its strategic plan. Based on the closing
price of $50.83 as on May 16, 2013, the expected annual dividend
of $1.44 affirms a yield of 2.8%. A steady dividend payout
facilitates the long-term strategy of the company to provide
attractive risk-adjusted returns to its stockholders.
We believe that the company will be able to generate sufficient
cash flows for its shareholders in the coming years, which will
likely be backed by strong operating performances and good
management decisions. Prior to this revision, in Jan, Williams
increased its quarterly dividend by 4.2%.
Williams has been regularly paying a quarterly cash dividend
since 1974. 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.
The company currently carries a Zacks Rank #3 (Hold), implying
that it is expected to perform in line with the broader U.S.
equity market over the next one to three months.
Williams 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 volume.
However, Williams reported weak first-quarter 2013 results,
hamstrung by a significant fall in natural gas liquid (NGL)
margins. Earnings per share - excluding special items - came in
at 22 cents, below the Zacks Consensus Estimate of 24 cents and
also down from the year-ago period adjusted profit of 39 cents.
Meanwhile, one can look at other energy production/pipeline
EQT Midstream Partners LP
Oiltanking Partners LP
) as attractive investments. All these firms sport a Zacks Rank
#1 (Strong Buy).
EQT MIDSTRM PTR (EQM): Free Stock Analysis
OILTANKING PTNR (OILT): Free Stock Analysis
SEMGROUP CORP-A (SEMG): Free Stock Analysis
WILLIAMS COS (WMB): Free Stock Analysis
To read this article on Zacks.com click here.