Showing posts with label WPZ. Show all posts
Showing posts with label WPZ. Show all posts

Monday, November 21, 2016

WPZ good news

Good news for a change. M*

Williams Partners: Distribution Is Getting Safer $WPZ

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Sunday, August 28, 2016

WPZ better than WMB

Let's hope this analysis is right. A 20%return would help my beleaguered 2015 Model Portfolio. M*

20% Return Expected From This 10% Yielder In One Year $WPZ

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Thursday, May 14, 2015

Benefit from holding WPZ in retirement account

MLP's are often recommended for taxable instead of qualified retirement accounts to take advantage of the MLP tax structure.

Here is a case where it may be better to have held WPZ in a retirement account.


Williams deal means higher taxes, lower income for some investors $WMB, $WPZ, $KMI

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Wednesday, April 22, 2015

Williams Partners WPZ

This 2011 and 2012 Dividend Machine has been maligned.  They merged with Access Midstream Partners.   WPZ's yield is a mighty 6.75%.

Today you can buy WPZ for about $50.45, sell a June $55 call for $.95 and get the May dividend of $.85.  

Take a look at the table below to see the benefits of this trade.


Disclosure:  Long WPZ with calls

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Tuesday, April 21, 2015

WPZ patience required

Williams Partners declares $0.85 dividend $WPZ
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Monday, April 6, 2015

Go gas WPZ

This former Dividend Machine could use a little more gas to keep up the robust dividend.  MM

Williams Partners to buy another 21% stake in UEO for $575M $WPZ, $WMB, $EVEP

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Thursday, December 4, 2014

WPZ Dividend Machine

Good news for a troubled Dividend Machine.  MM

Constitution Pipeline project wins FERC conditional approval $WPZ, $WMB, $COG, $PNY, $WGL

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Wednesday, November 19, 2014

WPZ hopeful

Industry-Leading Growth For Williams Partners LP $WPZ, $ACMP
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Wednesday, November 12, 2014

Income Investor Conundrum WPZ Williams Partners

Williams Partners, symbol WPZ, is one of the few Master Limited Partnerships that I included in any of my model Dividend Machine Portfolios.   In April of 2011, WPZ qualified as a Dividend Machine.

As far as income goes, WPZ has done pretty well.  Four years ago our income was $2.81 per share per year.  Now we get $3.714 per share per year a nice increase.

But, Williams Partners has been troubled.   Their dividend has increased but their stock price has not and that is because their earnings have not grown.

Growth at the cost of Income

Access Midstream Partners, symbol ACMP is going to merge with Williams Partners.  For each share of WPZ you own you will receive .8 shares of ACMP.   It is anticipated that the dividend will decrease but growth will increase which eventually will lead to a resumption of dividend growth.

Seeking Alpha published a very well researched article on this ownership change.   It should help you decide how to handle your position in WPZ.

ACMP, like WPZ, has demonstrated excellent dividend growth over the four years they have paid dividends.   Their D/E ratio is less than WPZ’s. 

An Income Investors Conundrum

Picking Dividend Machines is an excellent way to secure dividend income that increases.   Often times this type of strategy is considered boring and one that does not need attention.   WPZ is a good example of a Dividend Machine that needs attention.

The ownership change of WPZ will result in a reduction of our income and that is serious business to retired income investors.   Even with the cut, the new shares may yield more than you can get from another, similarly safe investment.   I say safe because while WPZ has had it troubles, you have not lost money if you bought it in 2011 at around $51.88.  Today it trades at $51.18.  Debt to Equity ratios are quite reasonable and pipelines are needed.

Covered calls might be able to make up the difference in the dividend cut but those will materialize only when others think this change is valuable.

I am going to hold for a while.   Stay tuned!.

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Thursday, October 30, 2014

WPZ raises dividend

Williams' Q3 misses Q3 earnings, expects ~15% annual dividend growth $WMB, $ACMP, $WPZ

Williams Partners has been a difficult holding.  But they raised the dividend again so I will hold a while longer.  TheMoneyMadam

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Monday, April 4, 2011

Williams Partners, symbol WPZ

Income idea and dividend machine WPZ is my pick for the week of April 4, 2011.
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