This Reliable High-Yield Dividend Stock Is Paying Its Investors 5.3% More in 2025
Williams Companies (NYSE: WMB) has been a very reliable income investment over the decades. The natural gas pipeline giant has paid dividends for 50 years. While the company hasn't increased its dividend payment every single year, it has grown its payout at a 6% compound annual rate over the past five years. The pipeline stock is providing its investors with another raise this year. It's increasing its dividend by 5.3%. That raise has pushed its dividend yield up to more than 3.6%, about triple the S&P 500's dividend yield (1.2%). Here's a look at what's driving its ability to send investors more cash and whether it has the fuel to continue increasing its payout. Williams is a cash-producing machine. The natural gas pipeline company was on track to produce $5.2 billion to $5.4 billion ($4.29 to $4.41 per share) of available funds from operations (FFO) last year. That would have been enough cash to cover its prior dividend level by a comfy 2.3 times, even after giving its investors a 6.1% raise last year. That low dividend payout ratio enabled Williams to retain more than enough money to cover its capital spending ($1.5 billion to $1.8 billion for growth capital projects and $1.1 billion to $1.3 billion for maintenance expenses). Continue reading
Williams Companies (NYSE: WMB) has been a very reliable income investment over the decades. The natural gas pipeline giant has paid dividends for 50 years. While the company hasn't increased its dividend payment every single year, it has grown its payout at a 6% compound annual rate over the past five years.
The pipeline stock is providing its investors with another raise this year. It's increasing its dividend by 5.3%. That raise has pushed its dividend yield up to more than 3.6%, about triple the S&P 500's dividend yield (1.2%). Here's a look at what's driving its ability to send investors more cash and whether it has the fuel to continue increasing its payout.
Williams is a cash-producing machine. The natural gas pipeline company was on track to produce $5.2 billion to $5.4 billion ($4.29 to $4.41 per share) of available funds from operations (FFO) last year. That would have been enough cash to cover its prior dividend level by a comfy 2.3 times, even after giving its investors a 6.1% raise last year. That low dividend payout ratio enabled Williams to retain more than enough money to cover its capital spending ($1.5 billion to $1.8 billion for growth capital projects and $1.1 billion to $1.3 billion for maintenance expenses).
