Investors should buy Williams Companies shares because the company's strong cash generation will allow it to boost its dividends in the coming years, according to Goldman Sachs.
The firm reiterated its buy rating on the natural gas pipeline company and added it to its conviction buy list.
"We believe the market does not appreciate WMB's visible, low-risk organic growth, strong FCF [free cash flow] generation, and deleveraging," analyst Theodore Durbin wrote in a note to clients Wednesday. "We believe WMB can hit the high end of its guidance for 10-15% annual dividend growth through 2020."
Williams currently has a dividend yield of 4 percent, according to FactSet.