This 5.1%-Yielding Dividend Stock Has Plenty of Fuel to Grow Through at Least 2028
Williams (NYSE: WMB) offers investors the best of both worlds. The natural gas pipeline company provides an attractive income stream via its 5.1%-yielding dividend. It also delivers growth. It has grown its earnings at a 7% compound annual rate over the last five years. That has given it the fuel to increase its dividend by about 6% annually during that time.
Williams has more growth ahead. The pipeline company recently made a couple of acquisitions and sanctioned some more expansion projects, extending its visible growth runway through 2028. Meanwhile, it has more projects in the pipeline. Williams' combination of growth and dividend income could give it the fuel to generate strong total returns over the next several years.
Williams has generated over $5 billion of adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) through the first nine months of this year. That's up 9% compared to the same period last year, even though natural gas prices are much lower. That has the pipeline company on track to produce $6.7 billion of adjusted EBITDA this year, $100 million ahead of its prior guidance range.
Source Fool.com
