This 6.8%-Yielding Stock Expects More Dividend Growth in 2020
Despite some headwinds, Williams Companies (NYSE: WMB) has delivered on its promised growth this year. The natural gas pipeline giant expects to generate roughly $3.1 billion in cash flow, which would be about 8% higher than last year's level. That growth comes even though commodity prices were much weaker than expected, and it sold several assets to shore up its balance sheet. This growing cash flow gave it the fuel to increase its dividend by 12% -- which was within its 10% to 15% target range -- while maintaining a conservative payout ratio of 60%.
Unfortunately, Williams' headwinds will have a more noticeable impact in 2020. However, the company expects to continue growing both its cash flow and its dividend next year. Add that to its stronger financial profile, and this 6.8%-yielding stock is an excellent one for income-seeking investors.
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Source Fool.com
