WMB Dividend Yield Pushes Past 4%

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Looking at the universe of stocks we cover at Dividend Channel , in trading on Monday, shares of Williams Cos Inc (Symbol: WMB) were yielding above the 4% mark based on its quarterly dividend (annualized to $1.61), with the stock changing hands as low as $40.20 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased shares of the S&P 500 ETF ( SPY ) back on 12/31/1999 - you would have paid $146.88 per share. Fast forward to 12/31/2012 and each share was worth $142.41 on that date, a decrease of $4.67/share over all those years. But now consider that you collected a whopping $25.98 per share in dividends over the same period, for a positive total return of 23.36%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.6%; so by comparison collecting a yield above 4% would appear considerably attractive if that yield is sustainable. Williams Cos Inc (Symbol: WMB) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index.

In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Williams Cos Inc , looking at the history chart for WMB below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 4% annual yield. WMB+Dividend+History+Chart


According to the ETF Finder at ETF Channel, WMB makes up 8.93% of the MLP and Energy Infrastructure ETF (Symbol: MLPX) which is trading up by about 0.2% on the day Monday.

Click here to find out which 9 other dividend stocks just recently went on sale »



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.




This article appears in: Investing , Investing Ideas

Referenced Stocks: SPY , WMB , MLPX

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