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The current year has proved to be quite an excellent one for energy stocks. Due to the improved oil price, the energy stock is averagely measured using the Vanguard Energy ETF (NYSEMKT: VDE). This holds higher than the number of 140 energy stocks.

However, not every energy stock has received an increase this year, and the most prominent ones among the laggards are Williams Companies (NYSE: WMB) and TransCanada (NYSE: TRP). Both of these stocks have been sold off in double digits.

A decline in the rates has pushed the dividend yields of these stocks above a rate of 5%. This makes them a great option for investors who are income focused, thus making these a great consideration for buying.

Double-digit growth in dividend with a double-digit amount of discount

The shares of Williams Companies started off great in the year 2018 but later went down with a rate of 10%. This company currently is expecting to generate a cash flow that is enough to cover up the 5%yielding dividend, which is 1.6 times the current year.

This will provide Williams a cash flow, which is enough to use and invest in projects that yield a high-return growth. Meanwhile, Williams is expecting a growth in its dividend and also seeks to see a fall in the leverage ratio from 5 times to lesser than 4.75 times in the coming year.

Williams is set to improve in the approaching years since it has already recognized an expansion of more than $20 billion. Clearly, its future seems to be quite bright and that is why the dividend stock would prove to be a good one in the long run.

Keeps refilling the growth tank

The TransCanada’s stock has got down by approximately 14% for this year, although the company has reported some solid first-quarter results. Just like Williams, the TransCanada is set to grow in the upcoming days.

It has expansion projects of 21 billion in the pipeline. Due to this, the company believes to achieve and increase the 5.2% dividend to a rate of 10% by the year 2021. Moreover, TransCanada has quite a healthier financial profile in its pipeline sector. This company seems to be poised to grow the payout to an almost double-digit pace by the coming years.

Income with upside but for a lower price

Both Williams and TransCanada would surely expect a growth in their dividends and cash flows at quite a healthy rate in the upcoming years. Selling off both these stocks in the coming years has given a push to their dividend yield to a decent level, hence giving its investors an opportunity to invest their funds in a great income stream.

Through this article, you got to know about the two topmost dividend stocks that you can buy on a sale. Both Williams and TransCanada would prove to be a great investment and give great returns to their investors in coming years. These companies should be definitely on your list if you are planning to invest in a suitable dividend stock this year.