Delving Into the Dividend Dynamics of ONEOK Inc
ONEOK Inc(OKE, Financial) recently announced a dividend of $0.99 per share, payable on 2024-05-15, with the ex-dividend date set for 2024-04-30. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into ONEOK Inc's dividend performance and assess its sustainability.
What Does ONEOK Inc Do?
ONEOK Inc operates in the energy sector, focusing on the gathering, processing, storage, and transportation of natural gas, as well as the transportation and fractionation of natural gas liquids. Its assets are strategically located in the midcontinent, Permian, and Rocky Mountain regions, which are key areas for energy resource development and transport.
A Glimpse at ONEOK Inc's Dividend History
ONEOK Inc has maintained a consistent dividend payment record since 1986, showcasing its commitment to returning value to shareholders. The dividends are distributed quarterly, reflecting a stable income stream for investors.
Furthermore, ONEOK Inc has increased its dividend each year since 1999, earning the prestigious title of a dividend aristocrat. This accolade is reserved for companies that have consistently raised their dividends for at least 25 consecutive years.
Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down ONEOK Inc's Dividend Yield and Growth
As of today, ONEOK Inc boasts a trailing dividend yield of 4.76% and a forward dividend yield of 4.89%, indicating expectations of increased dividend payments over the next year.
Over the past three years, ONEOK Inc's annual dividend growth rate was 0.70%. When extended to a five-year horizon, this growth rate climbs to 2.90% per year. Over the past decade, the annual dividends per share growth rate stands at an impressive 8.90%.
Considering ONEOK Inc's dividend yield and five-year growth rate, the 5-year yield on cost for ONEOK Inc stock is approximately 5.49%.
The Sustainability Question: Payout Ratio and Profitability
Evaluating the sustainability of dividends requires a look at the payout ratio. ONEOK Inc's dividend payout ratio is currently 0.67, meaning that 67% of its earnings are paid out as dividends. This ratio suggests a balance between returning profits to shareholders and retaining funds for future growth.
ONEOK Inc's profitability rank is a strong 8 out of 10, indicating robust earnings compared to its peers. The company has also reported positive net income each year for the past decade, reinforcing its financial stability.
Growth Metrics: The Future Outlook
ONEOK Inc's growth rank is an impressive 8 out of 10, hinting at a solid growth trajectory. The company's revenue per share and 3-year revenue growth rate of 22.60% per year outperform approximately 61.98% of global competitors.
The 3-year EPS growth rate, averaging 31.50% per year, surpasses about 61.1% of global competitors. Additionally, the company's 5-year EBITDA growth rate of 14.40% outperforms roughly 58.17% of global competitors, painting a promising picture for future dividend prospects.
Next Steps
In conclusion, ONEOK Inc's upcoming dividend payment, consistent dividend growth, prudent payout ratio, strong profitability, and positive growth metrics paint a promising picture for current and potential investors. With a history of dividend reliability and an outlook that suggests continued performance, ONEOK Inc represents a potentially attractive option for value investors seeking steady income and long-term growth. As the energy sector evolves and ONEOK Inc adapts, will its dividend continue to be a beacon of stability for investors? For those interested in high-dividend yield opportunities, GuruFocus Premium offers a High Dividend Yield Screener to discover similar investment options.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
