TULSA (dpa-AFX) - Williams (WMB) announced it plans to increase the annual dividend on its common stock by 25% to $1.00 per share. The company also outlined a new dividend policy that supports continued 10% to 15% annual dividend growth.
The dividend increase announced is effective with Williams' quarterly dividend of $0.25 per share to be paid in December 2011. The new, $0.25 quarterly dividend is double what the company paid in December 2010. Most recently, the company had paid a quarterly dividend of $0.20 per share.
The company noted that it plans to pay out substantially all of the distributions it receives from Williams Partners L.P. (WPZ). Longer term, the company expects its Midstream Canada & Olefins segment to contribute significantly to dividend growth. In the near term, Williams plans to reinvest Midstream Canada & Olefins cash flows in attractive growth projects.
Through 2013, the company expect to invest more than $5 billion in growth projects.
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