Top High-Yield Stocks: Verizon, Oneok, and More with Annual Growth Over 5%
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- Stable Earnings in Clean Energy: Clearway Energy boasts a dividend yield exceeding 5%, ensuring stable cash flow through long-term fixed-rate contracts, with expectations of 7% to 8% annual cash flow per share growth by 2030, supporting ongoing dividend increases.
- REIT Stability Advantage: NNN REIT offers a dividend yield over 5.5%, generating stable rental income from single-tenant, triple-net-leased properties, having increased dividends for 36 consecutive years, showcasing strong financial flexibility and investment potential.
- Pipeline Industry Growth Potential: Oneok has a 5.5% dividend yield, supported by long-term contracts and government-regulated revenue structures, enabling over 25 years of dividend stability, with plans for 3% to 4% annual growth in the future.
- Telecom Giant Expansion Strategy: Verizon's dividend yield exceeds 7%, leveraging the $20 billion acquisition of Frontier to expand its broadband network and enhance cross-selling capabilities, expected to support future dividend growth, having achieved a 19-year growth streak.
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Analyst Views on OKE
Wall Street analysts forecast OKE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for OKE is 86.00 USD with a low forecast of 75.00 USD and a high forecast of 110.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
7 Buy
5 Hold
0 Sell
Moderate Buy
Current: 77.740
Low
75.00
Averages
86.00
High
110.00
Current: 77.740
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.
Cushing Asset Management Increases Stake in Kinetik Holdings
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- AUM Impact: This acquisition raises Kinetik Holdings' representation to 3.8% of Cushing's assets under management, indicating its significant position within the fund's investment portfolio.
- Price Volatility: Despite Kinetik's stock price declining by 35.5% over the past year, the company recently raised its quarterly dividend by 4% to $0.81, demonstrating a positive cash flow performance even in challenging conditions.
- Market Comparison: Kinetik's 8.1% dividend yield is substantially higher than the S&P 500's 1.1%, which may attract more investors seeking stable income from the stock.
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J.P. Morgan Downgrades Enbridge and ONEOK Ratings
- Rating Downgrade: J.P. Morgan downgraded Enbridge (ENB) and ONEOK (OKE) from Overweight to Neutral with price targets of C$69 and US$83, reflecting concerns over how a softer macro environment impacts growth prospects for both companies.
- Cash Flow Stability: While Enbridge's 98% take-or-pay regulated cash flows provide nearly unmatched stability, the crude oil segment's growth prospects are threatened, particularly with the emerging competitive pressure from Venezuela.
- EBITDA Contribution Analysis: The analyst noted that despite Enbridge's diversified platform and significant scale, the crude oil segment only drives about 35% of the company's EBITDA, making it increasingly challenging to maintain competitive per-share growth over time.
- ONEOK's Underperformance: ONEOK's recent results fell short of EBITDA guidance, and the analyst believes that improved sentiment on ONEOK's stock may require higher oil prices to bolster investor views on the company's non-Permian liquids-rich drilling portfolio.
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