The Williams Companies (WMB), like other pipeline and midstream companies, represents a sort of hard-asset long-term arbitrage (infrastructure) on location differentials. Williams differs from other midstream companies, most of which are publicly-traded limited partnerships, by having simplified to a standard C-corporation, a format some investors prefer.
At the current stock price, the dividend yield is a very competitive 5.5% and the one-year target price offers a potential 15% upside.
What makes midstream companies different from a financial arbitrage instrument is that before getting rights-of-way and building multi-billion dollar pipelines, the companies get long-term