14 Best American Dividend Stocks to Invest In

5. The Williams Companies, Inc. (NYSE:WMB)

Number of Hedge Fund Holders: 80

On March 2, Morgan Stanley analyst Robert Kad raised the firm’s price recommendation on The Williams Companies, Inc. (NYSE:WMB) to $90 from $83. The firm reiterated an Overweight rating on the shares. The analyst told investors that further positive growth capex and EBITDA estimate revisions should support continued near-year multiple expansion.

Earlier in February, the company said it is exploring the purchase of natural gas production assets in the United States. The move would be unusual for an energy infrastructure operator. Three people familiar with the matter said the effort is aimed at securing natural gas supplies to support its one-stop-shop offering to hyperscalers and data center clients. The company has spent the past year positioning itself as a provider of energy for firms building artificial intelligence infrastructure. Alongside its traditional pipeline operations, it has been expanding into power generation capabilities.

Williams is now looking for upstream assets that could allow it to present itself as a single energy partner to hyperscalers, the sources said. The approach could give the company an edge when working with digital infrastructure operators that might otherwise need to negotiate with several providers. The sources also cautioned that there is no guarantee the company will move forward with the plan. They spoke on condition of anonymity to discuss confidential deliberations.

The Williams Companies, Inc. (NYSE:WMB) owns and operates energy infrastructure that delivers natural gas. The company’s segments include Transmission, Power & Gulf; Northeast G&P; West; and Gas & NGL Marketing Services.