Oneok Gives Shareholders Bigger Dividends More Quickly


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 hike.

Oneok ( OKE ) 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 ( OKS ), 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 Partners.

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 growers.

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 ( OGS ).

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 lower.

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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Personal Finance , Investing Ideas

Referenced Stocks: OKE , OKS , OGS

Investor's Business Daily

Investor's Business Daily

More from Investor's Business Daily:

Related Videos

What to Wear to a Wedding
What to Wear to a Wedding           
4th of July Outfits
4th of July Outfits                 



Most Active by Volume

  • $17.03 ▼ 1.10%
  • $30.555 ▲ 1.24%
  • $126.44 ▼ 0.13%
  • $40.59 ▼ 6.26%
  • $19.07 ▲ 1.54%
  • $26.78 ▲ 0.45%
  • $5.85 ▲ 1.56%
  • $8.83 ▲ 2.08%
As of 7/2/2015, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by