ONEOK Inc. Increases Dividend Amid Market Strength
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 22 2025
0mins
Should l Buy OKE?
Source: PRnewswire
ONEOK Inc. shares fell by 4.05% today, hitting a 20-day low, despite the broader market's positive performance with the Nasdaq-100 up 0.90% and the S&P 500 up 0.64%.
The decline in ONEOK's stock price comes amid the company's recent announcement of a 4% dividend increase, which has attracted income-seeking investors. However, the stock's performance appears to be influenced by sector rotation, as investors may be reallocating funds to other sectors despite the company's strong fundamentals and dividend yield of 5.6%.
This situation highlights the complexities of market dynamics, where even positive company news can be overshadowed by broader market trends. Investors will be watching closely to see if ONEOK can regain momentum in the coming weeks.
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Analyst Views on OKE
Wall Street analysts forecast OKE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for OKE is 86.00 USD with a low forecast of 75.00 USD and a high forecast of 110.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
7 Buy
5 Hold
0 Sell
Moderate Buy
Current: 80.460
Low
75.00
Averages
86.00
High
110.00
Current: 80.460
Low
75.00
Averages
86.00
High
110.00
About OKE
ONEOK, Inc. is a midstream operator that provides gathering, processing, fractionation, transportation, storage and marine export services. The Company's segments include Natural Gas Gathering and Processing; Natural Gas Liquids; Natural Gas Pipelines, and Refined Products and Crude. The Natural Gas Gathering and Processing segment provides midstream services to producers in the Rocky Mountain region, the Mid-Continent region, the Permian Basin region and the North Texas region. The Natural Gas Liquids segment owns and operates facilities that gather, fractionate, treat and distribute natural gas liquids (NGLs) and store Purity NGLs, primarily in the Rocky Mountain region, Mid-Continent region, Permian Basin and Gulf Coast region (including Louisiana). The Natural Gas Pipelines segment transports, stores and markets natural gas. The Refined Products and Crude segment gathers, transports, stores, distributes, blends and markets refined products and crude oil.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Stable Cash Flow: Brookfield Renewable secures 90% of its electricity sales through long-term power purchase agreements (PPAs) with an average contract length of 13 years, with 70% of its revenue linked to inflation, ensuring stable and steadily rising cash flow.
- Major Project Progress: Brookfield recently signed two 20-year hydropower agreements with Google, expected to generate over $3 billion in revenue, while the company has an 84 gigawatt backlog of renewable energy projects, aiming to increase its annual delivery capacity to 10 gigawatts by 2027.
- Acquisition-Driven Growth: Oneok, a leading pipeline company, generates over 90% of its revenue from long-term contracts and government-regulated rate structures, significantly expanding and diversifying its operations through acquisitions, with expectations of capturing hundreds of millions in commercial synergies in the coming years.
- Visible Dividend Growth: Both Brookfield and Oneok generate durable cash flows backed by long-term contracts, supporting their high-yield dividends; Brookfield plans to increase its dividend by 5% to 9% annually, while Oneok aims for a 3% to 4% increase, enhancing investor confidence for long-term holdings.
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- Growth Potential: Brookfield expects to grow its funds from operations per share by over 10% annually through 2030, planning to increase its 3.7% yielding dividend by 5% to 9% per year, showcasing strong growth drivers and confidence in future performance.
- Diversified Asset Portfolio: Oneok, as a leading pipeline company, generates over 90% of its earnings from long-term contracts and government-regulated rate structures, significantly expanding its midstream asset portfolio through acquisitions, and expects to capture hundreds of millions in commercial synergies in the coming years.
- Dividend Growth Outlook: Oneok plans to increase its 5.3% yielding dividend by 3% to 4% annually, backed by over 25 years of dividend stability and growth, enhancing investor confidence in holding the stock long-term.
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- Growth Investments: Despite investing $5.5 billion in growth initiatives, MPLX retained $1 billion in free cash flow after distributions, indicating its capacity for expansion and future growth potential.
- Future Expansion Plans: MPLX expects to invest another $2.4 billion in growth capital projects over the next year, including two new NGL fractionators expected to be completed in 2028 and 2029, further enhancing its growth visibility.
- Dividend Growth Outlook: With a strong financial profile and visible growth ahead, MPLX anticipates mid-single-digit earnings growth, which could support a similar rate of dividend growth, making it an ideal long-term investment choice.
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- Enterprise Products Partners: Enterprise Products Partners (EPD) anticipates a significant reduction in capital expenditures to $2.5 billion in 2026 from $4.5 billion in 2025, allowing for increased shareholder returns and potential large dividend hikes, having raised dividends for 27 consecutive years.
- Realty Income: Realty Income (O) pays monthly dividends and has increased them for 113 straight quarters, owning over 15,500 commercial properties, which provides stable cash flows across market cycles, making it a top dividend stock for 2026.
- Brookfield Infrastructure Partners: Brookfield Infrastructure Partners (BIP) raised $3 billion through capital recycling in 2025, targeting investments in high-growth areas like AI data centers, with expectations of 5% to 9% annual growth in funds from operations and dividends per share in 2026.
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- Realty Income: This real estate investment trust pays dividends monthly and has increased them for 113 consecutive quarters, owning over 15,500 commercial properties, which ensures stable cash flows across market cycles and interest rate environments, making it a top dividend stock to buy for 2026.
- Brookfield Infrastructure Partners: The company owns high-quality assets across utilities, transport, and midstream energy sectors, targeting 5% to 9% annual growth in funds from operations and dividends per share in 2026, indicating strong growth potential.
- Oneok's Turnaround: Despite a debt increase of over 25% in 2025 due to acquisitions, Oneok is expected to generate nearly $500 million in synergies and achieve a 4% dividend increase in 2026, highlighting its appeal as a high-yield stock.
See More
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- Dividend Growth Trend: Oneok recently raised its dividend by 4%, pushing its yield to 5.5%, and has a track record of over 25 years of stable or increasing dividends, with an expected annual growth of 3% to 4%, enhancing its attractiveness and supporting investor confidence.
- Acquisitions and Integration: Through three large-scale acquisitions in recent years, Oneok anticipates capturing hundreds of millions in cost savings and commercial synergies, which will not only enhance its financial flexibility but also provide robust support for future dividend growth.
- Kinetik Dividend Increase: Kinetik Holdings recently declared a dividend that is 4% higher than the previous quarter, boosting its yield to 8%, marking the second consecutive year of a 4% dividend increase, demonstrating strong cash flow and ongoing growth potential.
- Williams' Expansion Plans: Williams recently hiked its dividend by 5%, raising its yield to 3.2%, and has a substantial backlog of organic expansion projects expected to come online by 2030, which will provide ample momentum for future dividend growth.
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