Written by Robert Kovacs
Introduction
In the past I have written two articles on Oneok (NYSE:OKE).
The first makes me look stupid. In December 2019, I claimed that “I believe all dividend investors should purchase OKE at current prices (of $70). One year later, the stock is at $40.
The only solace, is that reading through the comments once again, most seemed to agree with me.
The second time I wrote on OKE was in May, when the stock was trading at $31. Do you remember how bleak the outlook was in early May? I do. Yet I suggested that “I believe OKE will continue to pay its dividend, and that the 12% yield is well worth the risk.”
This time around, readers mostly didn’t agree.
We then didn’t really mention OKE at all, until Sam wrote one of our most popular Seeking Alpha articles, which was impressively well timed –although that wasn’t the point--, titled “Clean Energy Vs Oil & Gas: The biggest lie of 2020”.
At that point, OKE was trading at $29, and we decided to buy more. We also added more to our model All Weather Dividends portfolio.
Had an investor bought in equal amounts on each of those occasions, he would be down $3 on his average cost, or up somewhat after dividends.
But 2 out of 3 good calls isn’t that great.
I am now writing this article, because I believe that by December 2021, even my first prediction, which was made a year ago, will look like a smart investment.
An investment grade, diversified company.
Investors have been worried about OKE’s outlook. Yet when S&P reviewed the company, they gave the company a stable BBB investment grade rating. In May, Moody’s followed suit giving a Baa3 stable rating. Finally, in November, Fitch updated its rating, maintaining a triple B.
