Unshakeable Dividend Champion: Oneok’s 25-Year Track Record of Success

A Pillar of Dividend Stability: Oneok’s Impressive Track Record

For over a quarter of a century, Oneok (NYSE: OKE) has consistently delivered dividend payments to its investors, boasting an impressive 1,230% growth since 2000. The pipeline company’s latest dividend increase of 4% brings its yield to nearly 4%, making it an attractive option for income-seeking investors.

A Premier Energy Infrastructure Asset Base

Oneok’s success can be attributed to its extensive network of over 50,000 miles of strategically located pipelines, transporting natural gas liquids, refined products, crude oil, and natural gas from production basins to market centers. The company’s complementary midstream assets, including natural gas process plants, NGL fractionators, and storage terminals, generate resilient cash flow supported by long-term contracts and regulated rate structures.

Growth Through Acquisitions and Organic Expansions

Oneok has invested heavily in high-return organic expansion projects, such as its MB-6 fractionator and the full looping of its West Texas NGL Pipeline System. The company has also been on a mergers and acquisitions (M&A) spree, acquiring Magellan Midstream Partners, Medallion Midstream, and a 43% interest in EnLink Midstream. These investments have enabled Oneok to steadily grow its earnings despite market turbulence.

Accelerating Growth

Oneok’s recent acquisitions are expected to fuel its growth, with the company anticipating over $8 billion of adjusted EBITDA this year, a more than 20% increase from last year’s level. The company has identified over $250 million of synergies from the EnLink and Medallion deals and is working to capture more than $415 million of synergies related to its Magellan acquisition.

A Compelling Option for Investors

With a 4% yield and attractive growth profile, Oneok is an appealing choice for investors seeking a blend of income and growth. The company’s growth drivers, including its recent acquisitions and organic expansion projects, should provide ample fuel to continue increasing its dividend. As a resilient dividend stock with a long history of stability, Oneok is poised to continue delivering for its investors in the future.

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