Tuesday, July 14, 2015

Recent Buy - ONEOK Inc. (OKE)

10th July 2015 I Bought 50 shares of OKE at $38.95 per share plus commission.

ONEOK, Inc., through its general partner interests in ONEOK Partners, L.P., engages in the gathering, processing, storage, and transportation of natural gas in the United States. The company gathers, treats, fractionates, stores, and transports natural gas liquids (NGL), as well as owns natural gas liquids gathering and distribution pipelines, natural gas liquids distribution and refined petroleum products pipelines, and terminal and storage facilities; and owns and operates interstate and intrastate regulated natural gas transmission pipelines and natural gas storage facilities, as well as stores and distributes NGL products to petrochemical manufacturers, heating fuel users, ethanol producers, refineries, and propane distributors. It also owns and operates a parking garage in downtown Tulsa, Oklahoma; and leases excess office space to others. The company was founded in 1906 and is headquartered in Tulsa, Oklahoma.

OKE is a Dividend Contender with an 13 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 64.4, 31.32, 24.3 and 18.7. (DividendChampions.xls) ONEOK Inc. now pays dividends of $0.605 per share normally in February, May, August and November.

Source: gurufocus.com

Dividend growth has been really wild in recent years and with the current commodity prices this cannot be expected to continue. OKE's revised guidance for year  2015 now includes a projected 4 to 8 percent increase in its dividends declared compared with 2014. With more than six percent dividend yield and low dividend growth, I have the patience to wait for the recovery of commodity prices. It is of course possible that the OKE will have to cut the dividend, if commodity prices remain at that level for a long time or continues to fall.

Here are few other DGI bloggers who have recently acquired OKE:

Some ratings for OKE:

    Yahoo:  Mean Recommendation 2.7, 1y Target Est $47.64
    Reuters: Mean Rating 2.75
    Zacks Rank: 3-Hold
    Morningstar:  (****)

At today's exchange rate, this purchase 50 shares of OKE will increase €80.85 ($90.15) of my expected annual net dividend income and will increase my portfolio's projected annual net dividend income to €9370.00. With purchase price $38.95 plus commission ($5.00) my starting yield on cost is 6.20%.

Click here to see my portfolio.

Full Disclosure: Long OKE


  1. DH,

    Glad to be a fellow shareholder here. Great infrastructure and juicy yield. :)


  2. Congrats on the purchase, DH. Looks like a great purchase and that yield looks pretty good


  3. That's a nice yield and nice growth too. Like you said, growth is not expected to continue that way, but it's still an interesting one.


  4. Nice buy. I grabbed this stock last week as well. Thanks for the mention.

  5. Saw this earlier today at Dividend Dreams and immediately added it to my watchlist. Nice buy!