4-Star Dividend Stocks Poised to Pop: Williams

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, energy infrastructure company Williams Companies (NYS: WMB) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Williams and see what CAPS investors are saying about the stock right now.

Williams facts

Headquarters (founded)

Tulsa, Okla. (1908)

Market Cap

$21.9 billion

Industry

Oil and gas storage and transportation

Trailing-12-Month Revenue

$7.9 billion

Management

CEO Alan Armstrong (since 2011)
CFO Donald Chappel (since 2005)

Return on Equity (average, past 3 years)

9.3%

Cash / Debt

$101.0 million / $9.0 billion

Dividend Yield

3.6%

Competitors

Dynegy (NYS: DYN)
El Paso
ExxonMobil (NYS: XOM)


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 541 members who have rated Williams believe the stock will outperform the S&P 500 going forward.

Just last month, one of those bulls, djohn1969, tapped the stock as a particularly tempting income opportunity:

Williams Companies is one of the best-run oil & gas infrastructure companies out there and is very shareholder friendly. For example, [Williams] currently pays a healthy 3.6% yield and management stated during the 2012 Analyst Day that it expects to raise the dividend every quarter in 2012 and continue raising the dividends through at least 2014.

In addition to the value of the strong dividends, now that Williams has eliminated a lot of risk by spinning off its exploration business earlier this year [WPX Energy (NYS: WPX) ], [Williams] stock price has been rising faster and more consistently.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Williams may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article 4-Star Dividend Stocks Poised to Pop: Williams originally appeared on Fool.com.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of ExxonMobil. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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