WMB - The Williams Way To Wealth: Why I'm So Bullish On This 5%-Yielding Natural Gas Giant

2024-05-09 23:19:00 ET

Summary

• Artificial intelligence and data centers will significantly increase natural gas demand, with a fifth of current demand expected to come from data centers alone by 2030.
• The Williams Companies is a midstream company that benefits from rising natural gas demand and has returned almost 100% over the past five years.
• WMB has a strong financial performance, with record contracted transmission capacity, significant acquisitions, and consistent earnings growth, making it a strong dividend stock with potential for future growth.

Introduction

I am a huge fan of natural gas. I believe it's one of the best things "ever," as it is a clean-burning alternative to coal, a relatively cheap commodity making the energy transition easier, and a great way for investors to make money.

As we can see below, in 2008, natural gas accounted for roughly a fifth of the U.S. power generation. Last year, that number was 43%, pushing coal to less than 20%.

On top of that, it's now getting support from a somewhat unexpected driver.

As reported by TC Energy ( TRP ), one of the world's largest midstream companies, artificial intelligence and data centers will send natural gas demand much higher....

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