"ONEOK has demonstrated consistent dividend growth over the past five years, with the annual payout climbing from $3.74 in 2021 to $4.12 in 2025. The company maintained its quarterly dividend through the challenging 2020-2021 period and has delivered a 2.47% annualized growth rate over the past five years. The latest increase brings the annualized dividend to $4.28, representing 4.04% year-over-year growth. Over a 26-year period, the dividend has surged 232%, demonstrating long-term commitment to shareholder returns."
"The dividend's sustainability hinges on free cash flow generation. In fiscal 2024, ONEOK generated $2.87 billion in free cash flow while paying out $2.31 billion in dividends, yielding a coverage ratio of 1.24x. This marks a significant improvement from 2022's tight 1.02x coverage. However, the first nine months of 2025 reveal tightening conditions. Year-to-date free cash flow of $1.87 billion barely covered dividend payments of $1.94 billion, resulting in 0.97x coverage-below the critical 1.0x threshold."
ONEOK increased its quarterly dividend to $1.07 on February 13, 2026, producing a 5.26% yield. Dividend growth has been steady, with annual payouts rising from $3.74 in 2021 to $4.12 in 2025 and the annualized dividend now at $4.28. Free cash flow covered dividends at 1.24x in fiscal 2024 but tightened to 0.97x year-to-date in 2025, with Q1 coverage at 0.43x and Q3 rebounding to 1.27x. The trailing twelve-month payout ratio is 73.8% based on $5.58 earnings per share. Recent operational results include Q3 2025 EPS of $1.49 and adjusted EBITDA of $2.12 billion.
Read at 24/7 Wall St.
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