Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, natural gas pipeline operator Williams Partners (NYSE: WPZ ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Williams' business and see what CAPS investors are saying about the stock right now.
Williams facts
| Headquarters (Founded) |
Tulsa, Okla. (2005) |
| Market Cap |
$16.3 billion |
| Industry |
Oil and gas storage and transportation |
| Trailing-12-Month Revenue |
$6.08 billion |
| Management |
CEO Alan Armstrong
CFO Donald Chappel
|
| Return on Capital (Average, Past 3 Years) |
16.6% |
| Cash/Debt |
$112 million / $7.02 billion |
| Dividend Yield |
5.2% |
| Competitors |
Enterprise Products Partners (NYSE: EPD )
Kinder Morgan Energy Partners (NYSE: KMP )
ONEOK Partners (NYSE: OKS )
|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 95% of the 247 members who have rated Williams believe the stock will outperform the S&P 500 going forward. These bulls include Vermilian and All-Star Chemdawg, who is ranked in the top 5% of our community. This past summer, Vermilian touched on the tailwinds working in Williams' favor:
The huge amount of natural gas currently coming on line from new technology will continue to increase for the next five to ten years. Pipeline companies will benefit and grow. Huge growth potential. Great dividend. If you believe in the nat gas story, check it out. The boom has already begun and more to come.
Over the past three years, in fact, Williams has grown its dividend at a solid rate of 6.5% annually. That's slightly faster than competitors Enterprise Products Partners (5.7%) and ONEOK Partners (3.5%), and matches Kinder Morgan Energy Partners' growth rate.
CAPS All-Star Chemdawg expands on the income opportunity:
Williams is one of the biggest pipeline companies in North America. ... It'll easily grow the dividend 6%-10% a year in the next two years. It's one of about a half-dozen big, well-financed pipeline players operating in the biggest natural gas find in U.S. history. And it's a solid, blue-chip income stock, with substantial upside and growth ahead of it. for my money ... it gets no better than this.
What do you think about Williams, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Interested in another easy way to track Williams? Add it to your watchlist.
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