Williams Companies Inc (NYSE:WMB) has recently announced a dividend of $0.48 per share, payable on 2024-06-24, with the ex-dividend date set for 2024-06-07. Investors eagerly await this payment while also focusing on the company’s dividend history, yield, and growth rates. Using data from GuruFocus, let’s delve into Williams Companies Inc’s dividend performance and evaluate its sustainability.
Williams Companies is a midstream energy company that owns and operates the Transco and Northwest pipeline systems along with natural gas gathering, processing, and storage assets. In August 2018, the company acquired the remaining 26% ownership of its limited partner, Williams Partners.
To gauge the sustainability of the dividend, one must consider the payout ratio. As of 2024-03-31, Williams Companies Inc’s dividend payout ratio is 0.92, indicating that the dividend may not be sustainable. However, the company’s profitability rank of 7 out of 10 as of 2024-03-31 suggests good profitability prospects, with net profit reported in 7 out of the past 10 years.
For dividends to be sustainable, a company must exhibit robust growth metrics. Williams Companies Inc’s growth rank of 7 out of 10 indicates a positive growth trajectory relative to competitors. The company’s revenue per share and 3-year revenue growth rate show a strong revenue model. Additionally, the 3-year EPS growth rate demonstrates the company’s ability to increase earnings, a crucial factor for sustaining dividends in the long term.
In conclusion, while Williams Companies Inc has a strong dividend history and promising yield, investors should closely monitor its payout ratio and growth metrics for long-term sustainability. The company’s profitability and earnings growth will play a vital role in maintaining dividend payments. For further exploration, GuruFocus Premium users can utilize the High Dividend Yield Screener to screen for high-dividend yield stocks.
Please note that this article, provided by GuruFocus, offers general insights based on historical data and analyst projections. It is not personalized financial advice and does not recommend specific investment actions. The analysis aims to deliver fundamental data-driven insights and may not include the latest company announcements or qualitative information. GuruFocus does not hold a position in the stocks mentioned in this article.