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ONEOK: A Reasonable Buy If The Biden Administration Supports It

Aug. 02, 2021 8:16 AM ETONEOK, Inc. (OKE)27 Comments
IncomeBent Investments profile picture
IncomeBent Investments


  • There has been some debate regarding whether the Biden administration will support LNG and NGL products.
  • EPS trends suggest that there will be sustained growth as long as secular energy trends continue to support renewables.
  • Crude price forecasts suggest that this may be the best chance for the widespread adoption of renewable energy sources.

Tulsans waiting in the rain at OneOK field to vote in the Presidential election - record turnout
Susan Vineyard/iStock Editorial via Getty Images

ONEOK, Inc. (NYSE: NYSE:OKE) is a liquid national gas company that operates out of Oklahoma and was founded in 1906. The company operates a vast network of liquid natural gas pipelines that stretch throughout the Midwest, sprawling from Texas to North Dakota. Specifically, liquid

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IncomeBent Investments profile picture
I provide easy-to-digest insights on stocks and bonds. I am obsessed with growth stocks and cyclical plays, but I also provide analysis on Value opportunities where appropriate. I employ industry and fundamental analysis to give a clear picture of the opportunity over a reasonable timeframe. - MBA and over a decade as an investor and investment author. - My content is not geared to anyone's specific investment goals, time horizons, or risk tolerance. Content is for illustrative purposes only and is not intended to displace advice from a fee-based financial adviser. It is not to be taken as investment advice, or influence investor decision making. Accuracy of data is not guaranteed.

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Comments (27)

berylrb profile picture
I know OKE has had a “stable” dividend for 25 years, has it been increasing for the same. I thought I read it has only been increasing for 18 years??
“It’s most recent move has been a bounce off the low-end of that range”(23.28)? Is this writer looking at the same chart as I am? The stock has been at least twice $23.28 for a long, long time. OKE in my opinion is one of the safest plays and probably the highest dividend yield in the energy sector.
fisherick profile picture
@tlcunninghamcpa and it was on sale last week, big time....along with some other energy names.
fisherick profile picture
@tlcunninghamcpa Most of the other energy names that I follow fell below the 200 day last week and most are still below it. OKE one of the few that didn't fall quite that far.
Mister Doom profile picture
No more K-1…I’m in
Why did the revenue go down from 2011 to 2021? It was 14.9 billion in the year 2011 and now it is 11.5 billion.

How is a great stock to buy when revenue is going down?
do investors buy only looking at the dividend yield?
The stock price dipped from 74$ to 25$ in the year 2020. that is almost 66% capital loss. My question is granted that dividend is 6% or so. to recoup my lost principal it will take,with 6% dividend I get, it will take 10 years.
As long as the big guy gets his 10% LNG and NGL will be just fine. Just need Hunter on the board or fill their boardroom with his art.
The author seems somewhat confused about the distinction between Natural Gas Liquids (NGL) and Liquefied Natural Gas (LNG), which are quite different commodities used in different ways and handled by different companies. Oneoak’s activities (which are in NGL) have little to do with any Biden Administration focus on LNG. Some NGL is burned as fuel, but much NGL is used as feedstuffs for other chemicals and plastics, which may or may not be liked or disliked by “green” politicians.
"The company recently hiked its dividend"
ONEOK Declares Quarterly Dividend
4:15 PM ET 7/21/21 | Dow Jones

TULSA, Okla., July 21, 2021 /PRNewswire/ -- The board of directors of ONEOK, Inc. (NYSE: OKE) today declared a quarterly dividend of 93.5 cents per share, unchanged from the previous quarter, resulting in an annualized dividend of $3.74 per share.

The dividend is payable Aug. 16, 2021, to shareholders of record at the close of business Aug. 2, 2021.
Your quote below mentions raising the dividend for the August payout.
I do not think this is correct. The recent divident was anounced at $0.935 per share inline with previous.

"As an investment, ONEOK has provided a stable dividend for over 25 years and just recently announced it was raising it to $0.94 per share for the August payout."
tomp1111 profile picture
@johnbferg This error on the author's part is probably being caused by the sloppy SA practice of rounding off the dividend rate to 2 decimal places (.935 -> .94) on the dividend scorecard page....which is something they do a lot of recently.

For OKE, the dividend scorecard page shows it as .94 for the August 16 payment, while the dividend history page correctly shows it as .935.
Dividend has NOT been raised and is still set at .935/share.
fisherick profile picture
@zebsterd Yeah.....I was wondering where I missed that one!
KOJ007 profile picture
biden regime*
ahfretheim profile picture
@KOJ007 Biden puppet state*
berylrb profile picture
@KOJ007 you guys are too young to have noticed you can find alpha with any President! Research is king!
Retired Investor profile picture
Thanks for the coverage. Currently writing Puts against OKE as premiums still are high.
@Retired Investor what expiration and strike are you targeting? 30-45 DTE and .2-.3 delta? How’s it been working? Have you been assigned?
Retired Investor profile picture
@DMJTradersUnlimited Correct on Delta. With weekly options, I try 10% OTM out 4-5 weeks. I have $51s that expire Friday so could get hit. Haven’t been assigned yet on OKE which I ben doing since March. Will write OTM CCs if assigned.
@Retired Investor so what’s your return figuring on tying up about $5k in capital per contract?
Long on OKE, 2K+ dividend every quarter has been hard to beat. Only regret is not buying another 100K worth last fall.
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