3 Buy-Rated Dividend Stocks
Williams Partners (NYSE: WPZ) shares currently have a dividend yield of 6.70%. Williams Partners L.P., an energy infrastructure company, focuses on connecting North America's hydrocarbon resource plays to growing markets for natural gas and natural gas liquids (NGL). It operates in two segments, Gas Pipeline and Midstream Gas & Liquids. The company has a P/E ratio of 26.02. Currently there are 8 analysts that rate Williams Partners a buy, no analysts rate it a sell, and 3 rate it a hold. The average volume for Williams Partners has been 1,103,400 shares per day over the past 30 days. Williams Partners has a market cap of $19.6 billion and is part of the chemicals industry. Shares are down 0.2% year to date as of the close of trading on Wednesday. TheStreet Ratings rates Williams Partners as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Highlights from the ratings report include:
- WPZ's revenue growth has slightly outpaced the industry average of 3.0%. Since the same quarter one year prior, revenues slightly increased by 2.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- 38.00% is the gross profit margin for WILLIAMS PARTNERS LP which we consider to be strong. Regardless of WPZ's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, WPZ's net profit margin of 15.73% compares favorably to the industry average.
- The share price of WILLIAMS PARTNERS LP has not done very well: it is down 16.97% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Despite the decline in its share price over the last year, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry. We feel, however, that other strengths this company displays compensate for this.
- WILLIAMS PARTNERS LP has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, WILLIAMS PARTNERS LP reported lower earnings of $1.94 versus $3.68 in the prior year. For the next year, the market is expecting a contraction of 7.2% in earnings ($1.80 versus $1.94).
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Oil, Gas & Consumable Fuels industry average. The net income has significantly decreased by 25.6% when compared to the same quarter one year ago, falling from $391.00 million to $291.00 million.
- You can view the full Williams Partners Ratings Report.
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