Williams Dividend Offers 11.6% Yield

The Williams Companies, Inc. WMB revealed that its Board has declared a special dividend of $0.10 per share of Williams common stock, following the terms of the merger agreement between Williams and Energy Transfer Equity, L.P. ETE. The dividend offered 11.6 percent yield, which is significantly higher than the five-year average yield of 5.3 percent.

According to Williams Companies, the special dividend is contingent on the consummation of the merger and would be payable to Williams holders of record at the close of business on the last business day before the closing of the merger.

The company indicated that to get the special dividend, holders of record on the last business day before the closing of the merger must hold their shares of Williams common stock up until the moment of closing of the merger.

Williams expect the special dividend to be paid as promptly as practicable after the closing of the merger. The special meeting for Williams' stockholders to vote on the merger would be held on June 27.

For 12 straight years, the company has been paying a dividend and the last five-year average growth was 36.6 percent while the three-year average growth was 25.3 percent.