Oneok: A Pipeline to…Something

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Oneok (OKE 0.71%). The very name sounds…substantial, doesn’t it? Like a forgotten deity of subterranean pressures. And indeed, it offers a dividend yield these days – a generous 5.5% – which, in this age of financial austerity, feels almost…improper. The S&P 500, meanwhile, coughs up a paltry 1.2%, a sum barely enough to buy a decent cup of coffee, let alone secure one’s future. One suspects the market’s collective frugality is less about prudence and more about a general air of…disappointment.

Higher yields, of course, often whisper tales of hidden perils. But with Oneok, the foundations appear…solid. Not merely stable, mind you, but imbued with a certain…obstinacy. It’s a rock, if you will, refusing to be moved by the whims of fortune. This allows them, quite brazenly, to offer investors yet another raise. One imagines the accountants are having palpitations, but the directors seem…amused.

Another Increment of…Comfort

The latest quarterly dividend, recently declared, arrives at $1.07 per share ($4.28 annualized) on February 13th, for those holding shares by February 2nd. A 4% increase. Not a revolution, certainly, but a noticeable improvement in the face of prevailing gloom. They’ve been doing this for a quarter-century, this slow, methodical accumulation of wealth. Not every year, of course. They occasionally feign modesty. But over the decade, the dividend has nearly doubled. A feat, one must admit, that puts most of its peers to shame. Those other pipeline companies, alas, seem to be perpetually engaged in a race to see who can reduce their payouts the most dramatically.

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The Illusion of Perpetual Motion

Oneok’s ambition is to grow this dividend by 3% to 4% annually. Achievable, they claim. And why not? Their financial strength is…impressive. Like a well-fed bear. And there’s a pipeline of growth, naturally. One always expects a pipeline with a company named Oneok. It’s practically a contractual obligation.

The operation is underpinned by long-term contracts and government regulation – the twin pillars of any truly stable, yet ultimately soul-crushing, enterprise. A conservative leverage ratio of 3.5 times. The numbers are…reassuring. One feels a strange compulsion to audit their ledgers, just to confirm the sheer, unadulterated solidity of it all.

They’ve been acquiring things, of course. Large-scale acquisitions. Like a collector of antique thimbles, but with considerably more capital. They anticipate “synergies” and “cost savings.” The usual jargon. They’re targeting $250 million by 2026. One suspects the true figure will be closer to $249.7 million, but who’s counting?

And then there are the organic expansion projects. More pipelines. More infrastructure. A new LPG export terminal. A large-scale natural gas pipeline. It’s a relentless march forward, this pursuit of…what, exactly? One begins to suspect it’s less about profit and more about a fundamental need to build. To fill the void.

They can also make bolt-on acquisitions, like last year’s $940 million deal. It’s all rather…efficient. They’re securing additional investments, naturally, extending the visibility of their growth profile. One suspects they could probably acquire the entire state of Oklahoma if they felt so inclined.

A Foundation of…Something

Oneok offers a substantial income stream. The dividend is on a rock-solid foundation, thanks to stable cash flows and a strong financial profile. And with more growth on the horizon, they should have ample fuel to continue increasing this high-yielding payout. It’s not a glamorous investment, perhaps. But in these turbulent times, a little solidity goes a long way. One might even call it…comforting. Though one wouldn’t dare say so out loud.

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2026-01-25 19:44