ONEOK: Buy This Income Powerhouse While It's Undervalued

Gen Alpha
Investing Group

Summary

  • ONEOK's fee-based midstream model delivers resilient, steady growth and reliable dividends, largely insulated from commodity price swings.
  • The recent price pullback and a 5% yield make OKE attractively valued, trading below historical P/E and peer cash flow multiples.
  • Integration of EnLink and Medallion assets, plus rising LNG exports and Gulf Coast demand, set up robust EBITDA and EPS growth.
  • OKE offers a compelling risk/reward for patient investors seeking income and total return from here.
  • Looking for a portfolio of ideas like this one? Members of iREIT®+HOYA Capital get exclusive access to our subscriber-only portfolios. Learn More »
Natural gas pipeline with high pressure on compressor station. Concept of energy transportation infrastructure

Denis Shevchuk

It pays to be patient, especially around steadily growing businesses that pay a decent dividend. Energy midstream remains one of my favorite sectors for their ‘toll-road’ like business model. This enables sleep well at night returns that are not so sensitive to commodity price swings.

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This article was written by

Gen Alpha
21.72K Followers

I am Gen Alpha. I have more than 14 years of investment experience, and an MBA in Finance. I focus on stocks that are more defensive in nature, with a medium- to long-term horizon.

I provide high-yield, dividend growth investment ideas in the investing group

iREIT®+HOYA Capital

. The group helps investors achieve dependable monthly income, portfolio diversification, and inflation hedging. It provides investment research on REITs, ETFs, closed-end funds, preferreds, and dividend champions across asset classes. It offers income-focused portfolios targeting dividend yields up to 10%.

Learn more

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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.

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