ONEOK Raises Dividend by 3.7% and Announces $2B Buyback Plan
ONEOK, a prominent player in the energy infrastructure sector, has recently announced an exciting development for its shareholders. The Tulsa-based company has raised its quarterly dividend by 3.7%, taking it to $0.99 per share. In addition to this, ONEOK has unveiled an ambitious plan for a $2 billion stock repurchase program to be executed over the next four years.
ONEOK’s Strategic Move to Reward Shareholders with Dividend Increase and Stock Repurchase
ONEOK’s decision to enhance shareholder returns through an increase in dividends and a stock repurchase plan reflects the company’s commitment to delivering value to its investors. The target for its annual dividend growth rate is set to hover between 3% and 4%, striking a balance between rewarding shareholders and maintaining a strong balance sheet. Shareholders on record as of January 30 will be eligible for the new dividend rate.
ONEOK’s Financial Strategy Reflects Confidence in Business Model
ONEOK’s financial strategy demonstrates the company’s confidence in its business model and its ability to generate robust cash flows. It plans to allocate a significant portion of its operational cash flow, estimated to be between 75% and 85% after accounting for investments, to fund both dividends and stock buybacks. This approach aligns with the company’s commitment to sustainable financial practices, as it aims to maintain a debt-to-EBITDA ratio around the 3.5 times mark.
How ONEOK’s Shareholder Returns Compare to Other Companies in the Sector
ONEOK’s announcement of increased shareholder returns through dividend hikes and stock repurchase programs highlights its strong commitment to investor value. To gain further insights into industry trends, it is worth evaluating the performance of similar companies in the sector. For instance, W. P. Carey Inc. (NYSE:NYSE:) has demonstrated a robust financial profile that can offer additional insights into the sector.
InvestingPro data reveals that W. P. Carey Inc. has a market capitalization of $14.45B and a P/E ratio of 18.05, adjusting to 23.51 for the last twelve months as of Q3 2023. This indicates a balance between value and earnings potential. The company has also shown significant revenue growth of 22.15% over the last twelve months as of Q3 2023, signifying a strong market position.
Two InvestingPro Tips further emphasize the strengths of W. P. Carey Inc.: the company has maintained dividend payments for 26 consecutive years, showcasing a reliable return to investors, and analysts predict that the company will be profitable this year, reinforcing its financial stability.
For investors seeking more comprehensive insights into the sector, InvestingPro offers additional tips. There are a total of 8 InvestingPro Tips available for W. P. Carey Inc., including analysis on sales growth, profit margins, and near-term earnings potential. These tips can be particularly useful for comparing industry peers and evaluating investment opportunities.
Analyst comment
Positive news: ONEOK Raises Dividend by 3.7% and Announces $2B Buyback Plan
Analyst prediction: The market is likely to respond positively to ONEOK’s decision to increase dividends and implement a stock buyback plan, as it demonstrates the company’s commitment to delivering value to shareholders and confidence in its business model.
