ONEOK Inc's Dividend Analysis
In This Article:
Delving Into the Dividend Dynamics of ONEOK Inc
ONEOK Inc(NYSE:OKE) 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?
-
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
-
How to calculate the intrinsic value of a stock?
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.