3 Buy-Rated Dividend Stocks
Williams Partners (NYSE: WPZ) shares currently have a dividend yield of 6.30%. 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 28.01. The average volume for Williams Partners has been 1,167,700 shares per day over the past 30 days. Williams Partners has a market cap of $21.1 billion and is part of the chemicals industry. Shares are up 7.3% 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, good cash flow from operations 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 1.1%. Since the same quarter one year prior, revenues slightly increased by 0.7%. 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.
- Net operating cash flow has slightly increased to $688.00 million or 6.00% when compared to the same quarter last year. Despite an increase in cash flow, WILLIAMS PARTNERS LP's cash flow growth rate is still lower than the industry average growth rate of 20.63%.
- 38.70% 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 16.00% compares favorably to the industry average.
- WPZ's debt-to-equity ratio of 0.95 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.43 is very low and demonstrates very weak liquidity.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, WILLIAMS PARTNERS LP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- You can view the full Williams Partners Ratings Report.
- Our dividend calendar.
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