Oneok (NYSE: OKE) is a high-yield dividend stock with a 5.6% yield, significantly higher than the S&P 500’s 1.1%. The company’s stable cash flow from pipeline operations supports its predictable dividend growth strategy, aiming for a 3% to 4% annual increase. With over 25 years of dividend stability and growth, Oneok presents a lucrative passive income opportunity for investors.
Unlocking Passive Income Potential with Oneok
Oneok’s pipeline business generates reliable cash flow through long-term contracts, enabling consistent dividend payouts. Currently paying $1.03 per share quarterly ($4.12 annually), owning approximately 243 shares would generate $1,000 in yearly dividend income. Compared to an S&P 500 index fund, investing in Oneok requires significantly less capital for the same dividend return.
Continuing its dividend growth trend, Oneok raised its payout by 4% in early 2025, aligning with its target of 3%-4% annual increases. The company’s strategic investments in expansion projects, like an LPG export terminal and a new natural gas pipeline, indicate a promising future for sustained dividend growth, making it an attractive choice for passive income investors.
Is Oneok Stock a Buy Right Now?
While Oneok offers a compelling dividend income opportunity, investors should explore other growth stocks identified by the Motley Fool Stock Advisor analyst team. With historical returns outperforming the market significantly, considering alternative investment options could lead to potentially higher returns in the long run.
For the latest top stock picks and to join a vibrant investing community, explore the 10 best stocks recommended by the Motley Fool Stock Advisor team.
*Stock Advisor returns as of January 4, 2026.
