Williams Companies (WMB) paid a dividend of $0.34 per share in the fourth quarter, which implies an annualized dividend of $1.36 per share. The dividend growth was more than 13% year-over-year. In the last five years, Williams Companies’ dividend growth was -1% mainly due to a steep dividend cut during the second quarter of 2016. Williams Companies is offering a dividend yield of 5%, which is lower than Alerian MLP ETF’s (AMLP) dividend yield of 8.0%. Energy Transfer (ET) yields 8.1%.
The chart above shows Williams Companies’ dividend yield compared to its five-year average. During the spurt in the yield in early 2016, stock prices fell to multiyear lows and crude oil touched its lowest point.
Williams Companies expects its distributable cash flow to be $2.6 billion–$2.9 billion in 2018 and $2.9 billion–$3.3 billion in 2019. The company aims for 10%–15% annual dividend growth in 2019.
To learn more about the top-yielding energy MLPs, read EPD, MMP, and MPLX: Top Three MLPs for Income Investors.