Raymond James Maintains Outperform Rating on ONEOK, Adjusts Price Target to $82
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 24 2025
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Should l Buy OKE?
Source: Benzinga
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Analyst Views on OKE
Wall Street analysts forecast OKE stock price to rise
12 Analyst Rating
7 Buy
5 Hold
0 Sell
Moderate Buy
Current: 84.600
Low
75.00
Averages
86.00
High
110.00
Current: 84.600
Low
75.00
Averages
86.00
High
110.00
About OKE
ONEOK, Inc. is a midstream operator that provides gathering, processing, fractionation, transportation, storage and marine export services. The Company's segments include Natural Gas Gathering and Processing; Natural Gas Liquids; Natural Gas Pipelines, and Refined Products and Crude. The Natural Gas Gathering and Processing segment provides midstream services to producers in the Rocky Mountain region, the Mid-Continent region, the Permian Basin region and the North Texas region. The Natural Gas Liquids segment owns and operates facilities that gather, fractionate, treat and distribute natural gas liquids (NGLs) and store Purity NGLs, primarily in the Rocky Mountain region, Mid-Continent region, Permian Basin and Gulf Coast region (including Louisiana). The Natural Gas Pipelines segment transports, stores and markets natural gas. The Refined Products and Crude segment gathers, transports, stores, distributes, blends and markets refined products and crude oil.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of High-Quality Pipeline Stocks
- Oneok Dividend Advantage: Oneok boasts a dividend yield exceeding 5%, significantly higher than the S&P 500's 1.1%, and has nearly doubled its dividend over the past decade, demonstrating robust payout capabilities supported by stable cash flows and long-term contracts.
- Financial Stability: Oneok plans to allocate less than 85% of its stable cash flow to dividends, maintaining a strong financial profile with a target leverage ratio of 3.5 times, which supports its organic expansion projects, including an LPG export terminal and a gas pipeline expected to enter commercial service in 2028.
- Kinder Morgan's Growth Potential: Kinder Morgan currently has a 3.7% dividend yield and expects to raise its payout by about 2% this year, marking its ninth consecutive year of dividend increases, reflecting its ongoing investments in expansion projects and strong financial health.
- Investment Choice Comparison: Oneok offers a higher current dividend yield, making it suitable for income-focused investors, while Kinder Morgan presents greater growth potential, appealing to those seeking higher total returns.
See More
Analysis of High-Yield Stocks in the Pipeline Sector
- Oneok Dividend Growth: Oneok expects to grow its dividend by 3% to 4% annually, currently yielding over 5%, significantly higher than the S&P 500's 1.1%, which positions it well to attract income-seeking investors supported by stable cash flows.
- Kinder Morgan Dividend Performance: Kinder Morgan anticipates a 2% increase in its dividend this year, marking its ninth consecutive year of increases; although its yield is 3.7%, its lower payout ratio (around 50%) allows for funding future expansion projects.
- Financial Stability Comparison: Oneok targets a leverage ratio of 3.5 times and is undertaking several organic expansion projects, including the construction of an LPG export terminal and a gas pipeline, expected to enter commercial service by 2028, enhancing its long-term growth potential.
- Investment in Expansion Projects: Kinder Morgan has a $10 billion project backlog expected to be completed by Q2 2030, which will drive strong earnings growth while enabling continued dividend increases, showcasing its competitive edge in the pipeline sector.
See More
Income Investors Face Choices Amid Rising Treasury Yields
- UnitedHealth Membership Loss: The company anticipates losing up to 2.8 million members due to rising medical costs, resulting in a 20% drop in stock price following its Q4 earnings release, reflecting market concerns over profitability.
- Ryman's Performance Decline: Ryman Hospitality Properties reported a 15.5% drop in adjusted funds from operations (AFFO) per unit in Q3, primarily due to planned renovations and an increase in short-term cancellations, although bookings are up nearly 8% this year.
- ONEOK's Significant Earnings Growth: ONEOK's adjusted EBITDA surged 37% year-over-year to $2.1 billion in Q3, driven by contributions from EnLink and Medallion assets, showcasing its enhanced integration capabilities.
- Dividend Safety Analysis: Despite ongoing uncertainties, UnitedHealth's 3.2% dividend remains secure, with last year's free cash flow reaching $16 billion, nearly double the dividend payout, indicating strong financial health.
See More
Dividend Analysis of Realty Income and Oneok
- REIT Performance: Realty Income, as a real estate investment trust, maintains a nearly 99% occupancy rate and achieved a 3.5% rental rate increase on expiring leases, demonstrating resilience in a competitive retail market and boosting investor confidence in its dividend-paying capacity.
- Dividend Payment History: Realty Income has consistently raised its dividends for 113 consecutive quarters, with the latest monthly payment increasing from $0.2695 to $0.27, reflecting strong cash flow and financial stability, resulting in a dividend yield of 5.1%, significantly higher than the S&P 500's 1.2%.
- Midstream Energy Growth: Oneok, as a midstream energy company, reported a 38.1% increase in operating income to $1.6 billion in the third quarter, primarily due to its fee-based revenue model, which ensures stable cash flow and enhances its ability to pay dividends.
- Dividend Increase and Appeal: Oneok raised its February quarterly dividend by approximately 4% to $1.07, resulting in an attractive dividend yield of 5.3%, showcasing the company's strong profitability and commitment to shareholder returns, appealing to investors seeking stable income.
See More
Brookfield and Oneok's Sustainable Growth Outlook
- Stable Cash Flow: Brookfield Renewable secures 90% of its electricity sales through long-term power purchase agreements (PPAs) with an average contract length of 13 years, with 70% of its revenue linked to inflation, ensuring stable and steadily rising cash flow.
- Major Project Progress: Brookfield recently signed two 20-year hydropower agreements with Google, expected to generate over $3 billion in revenue, while the company has an 84 gigawatt backlog of renewable energy projects, aiming to increase its annual delivery capacity to 10 gigawatts by 2027.
- Acquisition-Driven Growth: Oneok, a leading pipeline company, generates over 90% of its revenue from long-term contracts and government-regulated rate structures, significantly expanding and diversifying its operations through acquisitions, with expectations of capturing hundreds of millions in commercial synergies in the coming years.
- Visible Dividend Growth: Both Brookfield and Oneok generate durable cash flows backed by long-term contracts, supporting their high-yield dividends; Brookfield plans to increase its dividend by 5% to 9% annually, while Oneok aims for a 3% to 4% increase, enhancing investor confidence for long-term holdings.
See More
Two Dividend Stocks to Hold for the Next 5 Years
- Cash Flow Stability: Brookfield Renewable secures 90% of its electricity sales through long-term power purchase agreements (PPAs) with utilities and large corporate clients, averaging 13 years in contract length, with 70% of revenue linked to inflation, ensuring stable and steadily rising cash flow.
- Growth Potential: Brookfield expects to grow its funds from operations per share by over 10% annually through 2030, planning to increase its 3.7% yielding dividend by 5% to 9% per year, showcasing strong growth drivers and confidence in future performance.
- Diversified Asset Portfolio: Oneok, as a leading pipeline company, generates over 90% of its earnings from long-term contracts and government-regulated rate structures, significantly expanding its midstream asset portfolio through acquisitions, and expects to capture hundreds of millions in commercial synergies in the coming years.
- Dividend Growth Outlook: Oneok plans to increase its 5.3% yielding dividend by 3% to 4% annually, backed by over 25 years of dividend stability and growth, enhancing investor confidence in holding the stock long-term.
See More
Analysis of High-Quality Pipeline Stocks
- Oneok Dividend Advantage: Oneok boasts a dividend yield exceeding 5%, significantly higher than the S&P 500's 1.1%, and has nearly doubled its dividend over the past decade, demonstrating robust payout capabilities supported by stable cash flows and long-term contracts.
- Financial Stability: Oneok plans to allocate less than 85% of its stable cash flow to dividends, maintaining a strong financial profile with a target leverage ratio of 3.5 times, which supports its organic expansion projects, including an LPG export terminal and a gas pipeline expected to enter commercial service in 2028.
- Kinder Morgan's Growth Potential: Kinder Morgan currently has a 3.7% dividend yield and expects to raise its payout by about 2% this year, marking its ninth consecutive year of dividend increases, reflecting its ongoing investments in expansion projects and strong financial health.
- Investment Choice Comparison: Oneok offers a higher current dividend yield, making it suitable for income-focused investors, while Kinder Morgan presents greater growth potential, appealing to those seeking higher total returns.
See More
Analysis of High-Yield Stocks in the Pipeline Sector
- Oneok Dividend Growth: Oneok expects to grow its dividend by 3% to 4% annually, currently yielding over 5%, significantly higher than the S&P 500's 1.1%, which positions it well to attract income-seeking investors supported by stable cash flows.
- Kinder Morgan Dividend Performance: Kinder Morgan anticipates a 2% increase in its dividend this year, marking its ninth consecutive year of increases; although its yield is 3.7%, its lower payout ratio (around 50%) allows for funding future expansion projects.
- Financial Stability Comparison: Oneok targets a leverage ratio of 3.5 times and is undertaking several organic expansion projects, including the construction of an LPG export terminal and a gas pipeline, expected to enter commercial service by 2028, enhancing its long-term growth potential.
- Investment in Expansion Projects: Kinder Morgan has a $10 billion project backlog expected to be completed by Q2 2030, which will drive strong earnings growth while enabling continued dividend increases, showcasing its competitive edge in the pipeline sector.
See More
Income Investors Face Choices Amid Rising Treasury Yields
- UnitedHealth Membership Loss: The company anticipates losing up to 2.8 million members due to rising medical costs, resulting in a 20% drop in stock price following its Q4 earnings release, reflecting market concerns over profitability.
- Ryman's Performance Decline: Ryman Hospitality Properties reported a 15.5% drop in adjusted funds from operations (AFFO) per unit in Q3, primarily due to planned renovations and an increase in short-term cancellations, although bookings are up nearly 8% this year.
- ONEOK's Significant Earnings Growth: ONEOK's adjusted EBITDA surged 37% year-over-year to $2.1 billion in Q3, driven by contributions from EnLink and Medallion assets, showcasing its enhanced integration capabilities.
- Dividend Safety Analysis: Despite ongoing uncertainties, UnitedHealth's 3.2% dividend remains secure, with last year's free cash flow reaching $16 billion, nearly double the dividend payout, indicating strong financial health.
See More
Dividend Analysis of Realty Income and Oneok
- REIT Performance: Realty Income, as a real estate investment trust, maintains a nearly 99% occupancy rate and achieved a 3.5% rental rate increase on expiring leases, demonstrating resilience in a competitive retail market and boosting investor confidence in its dividend-paying capacity.
- Dividend Payment History: Realty Income has consistently raised its dividends for 113 consecutive quarters, with the latest monthly payment increasing from $0.2695 to $0.27, reflecting strong cash flow and financial stability, resulting in a dividend yield of 5.1%, significantly higher than the S&P 500's 1.2%.
- Midstream Energy Growth: Oneok, as a midstream energy company, reported a 38.1% increase in operating income to $1.6 billion in the third quarter, primarily due to its fee-based revenue model, which ensures stable cash flow and enhances its ability to pay dividends.
- Dividend Increase and Appeal: Oneok raised its February quarterly dividend by approximately 4% to $1.07, resulting in an attractive dividend yield of 5.3%, showcasing the company's strong profitability and commitment to shareholder returns, appealing to investors seeking stable income.
See More
Brookfield and Oneok's Sustainable Growth Outlook
- Stable Cash Flow: Brookfield Renewable secures 90% of its electricity sales through long-term power purchase agreements (PPAs) with an average contract length of 13 years, with 70% of its revenue linked to inflation, ensuring stable and steadily rising cash flow.
- Major Project Progress: Brookfield recently signed two 20-year hydropower agreements with Google, expected to generate over $3 billion in revenue, while the company has an 84 gigawatt backlog of renewable energy projects, aiming to increase its annual delivery capacity to 10 gigawatts by 2027.
- Acquisition-Driven Growth: Oneok, a leading pipeline company, generates over 90% of its revenue from long-term contracts and government-regulated rate structures, significantly expanding and diversifying its operations through acquisitions, with expectations of capturing hundreds of millions in commercial synergies in the coming years.
- Visible Dividend Growth: Both Brookfield and Oneok generate durable cash flows backed by long-term contracts, supporting their high-yield dividends; Brookfield plans to increase its dividend by 5% to 9% annually, while Oneok aims for a 3% to 4% increase, enhancing investor confidence for long-term holdings.
See More
Two Dividend Stocks to Hold for the Next 5 Years
- Cash Flow Stability: Brookfield Renewable secures 90% of its electricity sales through long-term power purchase agreements (PPAs) with utilities and large corporate clients, averaging 13 years in contract length, with 70% of revenue linked to inflation, ensuring stable and steadily rising cash flow.
- Growth Potential: Brookfield expects to grow its funds from operations per share by over 10% annually through 2030, planning to increase its 3.7% yielding dividend by 5% to 9% per year, showcasing strong growth drivers and confidence in future performance.
- Diversified Asset Portfolio: Oneok, as a leading pipeline company, generates over 90% of its earnings from long-term contracts and government-regulated rate structures, significantly expanding its midstream asset portfolio through acquisitions, and expects to capture hundreds of millions in commercial synergies in the coming years.
- Dividend Growth Outlook: Oneok plans to increase its 5.3% yielding dividend by 3% to 4% annually, backed by over 25 years of dividend stability and growth, enhancing investor confidence in holding the stock long-term.
See More
