March 23, 2015
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(Update: BUY FMO More info to follow)
(Update: Adding to BSJM if you can get under $25.00)
(Update: BUY KMI IF….IF you can get under $40.00……. we may not get a pullback to the $40 level. This is ok for the IRA.)
Today we are suggesting you look at WMB giving you just under 5%, This is a long term investment that you should plan on holding ‘forever”. You CAN buy this in the IRA. I have pasted a lot of information below which gives you a good understanding of this position.
(WMB could go lower, or higher, who knows. With the energy segment in flux nobody can predict the price. But you should buy right now.)
I have copied some information below from the following article:
Much like ONEOK, Williams is the general partner of a master limited partnership — Williams Partners L.P. (NYSE:WPZ), a large-scale infrastructure company connecting natural gas throughout North America. The company proudly claims: “We move 20 percent of the nation’s gas. We make energy happen.” The company also makes dividend payouts happen. Although the dividend was kept at just a penny per quarter from 2002 through 2004, Williams has since proven itself to have an increasing propensity to reward shareholders via cash dividends. The company has paid a higher dividend each year since 2005 and increased the dividend every quarter for the last 13 quarters.
Recently, Williams announced a $0.58 quarterly dividend, payable on March 30th. This increase was 44% higher than the previous year’s mark and 1.5% higher than the previous quarter. With a share price near $49, and an assumed annual payout of $2.32, this equates to a “current” yield around 4.7%. Of course the company is expected to increase its dividend prior to 2016.
On February 18th of this year, Williams reported full year 2014 financial results and updated its guidance. With respect to the dividend, the company expects to pay $2.38 per share during 2015 with 10% to 15% annual dividend growth through 2017. Once more you have the caveat of trusting assumptions and doing further research. However, as indicated for a starting baseline, let’s imagine 10% growth could be possible.
For today’s investor that might mean collecting $2.38, $2.62 and $2.88 per share — or nearly $8 total — over the next three years. Expressed differently, you might expect to receive 16% of your initial investment in the form of dividends through 2017. Much like ONEOK, this represents a reasonable investment return in its own right. Without capital appreciation, this would equate to 5% annual returns. Granted this would simultaneously require a dividend yield around 5.9%. If the future yield happens to be lower, say 5%, your total expected returns quickly approach double digits.
More info copied from another site:
If you are a long-term investor looking for growth and income, the GPs will generally be the way to go. Their faster dividend growth rates make them more attractive as growth investments. Also, unlike MLPs, GPs that are organized as corporations (such as WMB, KMI and OKE) can be safely held in an IRA or Roth IRA account without generating unrelated business taxable income. GPs can be pretty unpopular with MLP unit holders who feel that “their” cash is being disproportionately siphoned off to management (this is a common complaint against KMI by KMP shareholders).
So why isn’t the American Public demanding change???? From AP:
The 2014 General Social Survey finds only 23 percent of Americans have a great deal of confidence in the Supreme Court, 11 percent in the executive branch and 5 percent in Congress. By contrast, half have a great deal of confidence in the military.
THEATRE. The Illusionists. This “magic” production just ended here in Chicago but it you get the chance to see it in your city, run and get tickets. This is an entertaining show with some great magic. The kids will love it.