ONEOK: A Smart 6% Yield To Have Your Cake And Eat It Too

Summary

• ONEOK is a promising stock for income investors due to its 6% yield and good growth prospects, as well as its long dividend track record.
• The company is well-positioned for future growth as demand for natural gas is expected to rise, and it has reduced its net debt by $1+ billion over the past year.
• Risks include uncertainty over its acquisition of Magellan Midstream Partners and potential execution risks, but its solid dividend yield and low price-to-cash flow multiple make it attractive.
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Analyst’s Disclosure:I/we have a beneficial long position in the shares of OKE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am not an investment advisor. This article is for informational purposes and does not constitute as financial advice. Readers are encouraged and expected to perform due diligence and draw their own conclusions prior to making any investment decisions.