LONDON, UK / ACCESSWIRE / January 25, 2018 /Active-Investors has a free review on ONEOK, Inc. (NYSE: OKE) following the Company's announcement that it will begin trading ex-dividend on January 26, 2018. To capture the dividend payout, investors must purchase the stock a day prior to the ex-dividend date that is by latest at the end of the trading session on January 25, 2018. Active-Investors has initiated due-diligence on this dividend stock. Register with us for more free research including the one on OKE:
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On January 17, 2018, ONEOK's Board of Directors increased the Company's quarterly dividend $0.025 per share, or 3% to $0.77 per share, resulting in an annualized dividend of $3.08 per share. The dividend is payable February 14, 2018, to shareholders of record at the close of business January 29, 2018.
ONEOK's indicated dividend represents a yield of 5.14%, which is more than double compared to the average dividend yield of 2.35% for the Utilities sector. ONEOK has increased its dividend by 25% since the close of the ONEOK and ONEOK Partners merger transaction in June 2017. The Company has previously announced expected annual dividend growth of approximately 9% to 11% through 2021.
At the end of third quarter ended September 30, 2017, ONEOK had a dividend coverage ratio (DCR) of 1.29 and for the nine months ended September 30, 2017, the dividend coverage ratio came in at 1.42. The DCR indicate a Company's capacity to pay dividends out of profit attributable to the shareholders. For instance, a DCR of 2 implies that a Company has sufficient earnings to pay dividends amounting to 2 times of the present dividend payout during the period.
According to analysts' estimates, ONEOK is forecasted to report earnings of $2.21 per share for the next year compared to the Company's annualized dividend of $3.08 per share.
At September 30, 2017, ONEOK's cash and cash equivalents totaled $11.68 million. The Company's net cash provided by operating activities for the nine months ended September 30, 2017, totaled $936.00 million compared to $922.03 million for the year ago same period. The Company's strong financial position indicates its ability to absorb any fluctuations in earnings and cash flow and to sustain the dividend distribution for a long period.
Recent Development for ONEOK
On January 22, 2018, ONEOK announced that it is expecting full-year 2018 net income to be in the range of $955 million to $1.155 billion. The Company's adjusted EBITDA for 2018 is expected to be in the band of $2.215 billion to $2.415 billion, an approximately 20% increase compared to its previously announced 2017 guidance.
ONEOK continues to expect average annual dividend growth of 9% to 11% through 2021 and annual dividend coverage greater than 1.2 times. ONEOK expects approximately 85% to 95% of its 2018 dividend payments to investors to be a return of capital. The Company stated that it has approximately $2 billion of potential capital-growth projects are in the late stages of development and are expected to be announced when sufficient supply commitments are secured. ONEOK does not expect to issue additional equity in 2018 and well into 2019.
ONEOK, is one of the largest energy midstream service providers in the US, connecting prolific supply basins with key market centers. The Company owns and operates one of the US' premier natural gas liquids (NGL) systems and is a leader in the gathering, processing, storage and transportation of natural gas. ONEOK's operations include a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian, and Rocky Mountain regions. ONEOK is a FORTUNE 500 Company and is included in Standard & Poor's (S&P) 500 index.
Stock Performance Snapshot
January 24,2018 - At Wednesday's closing bell, ONEOK's stock slightly climbed 0.38%, ending the trading session at $60.71.
Volume traded for the day: 2.82 million shares.
Stock performance in the last month – up 16.26%; previous three-month period – up 10.28%; past twelve-month period – up 7.87%; and year-to-date – up 13.58%
After yesterday's close, ONEOK's market cap was at $23.21 billion.
Price to Earnings (P/E) ratio was at 37.92.
The stock has a dividend yield of 5.07%.
The stock is part of the Utilities sector, categorized under the Gas Utilities industry.
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