This 8.3%-Yielding Dividend Stock's $885 Million Acquisition Will Give It the Fuel to Push Its Payout Even Higher
Western Midstream (NYSE: WES) pays its investors an attractive dividend that yields 8.3%. That's well above average; the dividend yield on the S&P 500 is about 1.5% these days.
And that already high-yielding payout is likely to head even higher after Western Midstream sealed a deal to buy Meritage Midstream Services II for $885 million in cash. The acquisition will boost its free cash flow, giving Western Midstream the flexibility to increase its payout after it closes the transaction later this year. It will make the pipeline company an even more attractive option for income-seeking investors.
Western Midstream has agreed to acquire privately held Meritage Midstream Services II in an all-cash deal. The midstream company operates a large-scale natural gas gathering and processing business in Wyoming's Powder River Basin. It owns 1,500 miles of natural gas gathering lines and 380 million cubic feet per day of natural gas processing capacity. It also owns the 120-mile Thunder Creek natural gas liquids (NGL) pipeline.
Source Fool.com
