It's good to receive higher dividends from a company, and it's
even better when you don't have to wait years for a payout
) has paid shareholders higher dividends much more frequently. It
tends to raise its dividend after every couple of quarters or so.
In April, the company jacked up its quarterly dividend by 40% to
56 cents a share.
Oneok is the general partner ofOneok Partners (
), a limited partnership that gathers and processes natural gas.
Oneok has a 41% stake in Oneok Partners. The funds to pay
dividends are expected to come from projects from Oneok
Oneok's quarterly dividend has shot up 70% from levels in late
2012. The company is expecting more dividend increases. Oneok has
said it expects average annual dividend hikes of 20% to 25%
between 2013 and 2016.
Over the past five years, Oneok's dividend has grown at an
average annual rate of 16%. It's among the steadiest dividend
On an annual basis, Oneok now pays $2.24 cents a share, which
works out to a yield of about 3.3%. That is one of the lower
yields among the 76 dividend-paying stocks in the Oil &
Gas-Transportation/Pipeline group. But Oneok is one of the
better-rated stocks. It has a Composite Rating of 95.
Earlier this year, Oneok spun off its natural gas distribution
business into a separate publicly traded company calledOne Gas (
Although Oneok's earnings fell in 2013, they are expected to
rise 9% to $1.63 a share this year. For 2015, profit should climb
22% to $1.99 a share. But both estimates were recently revised
Oneok is trading near an all-time high but is extended from a
recent rebound off its 10-week moving average. Volume in the
rebound was strong in the past two weeks, although trade has
dropped off sharply this week. The stock hasn't had a down week
in heavy volume in nearly two months.