Here was a risky dividend play for us and it did not work out for us. On an off note, natural gas main component is methane. Methane chemical Formula is CH4, or 1 carbon atom and 4 hydrogen atoms. Now, back to selling our natural gas pipes.
Williams Companies (WMB) is a natural gas pipeline and has pipeline in at least 20 states and they have 13,600 miles of pipelines. They also gather, treat, process, and compress natural gas. They also have additional services around natural gas usage. Back in 1908 they were founded and they are based in Tulsa, Oklahoma.
We originally bought this stock in hopes that the merger between Williams (WMB) and Energy Transfer (ETE) would not work out and we will get a consistent large dividend afterwards. However, while reading about them, an articles came out that if the merger did not happen, they would have to significantly cut their dividend. So it appears that if they do or do not merge, the dividend is getting cut.
What I Sold
Because of the articles we read saying the dividend is going to be cut, we sold all of our shares of Williams (WMB). We knew this was a high risk dividend, and it turns out we were wrong. This is the second dividend fossil fuel stock we were wrong about. However, when we sold, we made a small profit. So, no harm no foul. Hopefully our next pick works out better.
- ETE – We do not own or plan to own the stock in the next week.
- WMB – We sold all of our shares.