5 Things ONEOK, Inc.'s Management Wants You to Know About Its Growth Prospects
ONEOK (NYSE: OKE) recently reported strong third-quarter results as earnings and cash flow surged 10% thanks to improving volumes across all three of the company's business segments. However, as good as those results were, the pipeline and processing company expects even more growth over the next few years. That was evident by the comments management made on the accompanying conference call, where it pointed out five factors that fueled its bullish view on the future.
Earlier this year, ONEOK unveiled its five-year plan, which made the company seem like a gold mine for income investors. That view hasn't dimmed one bit, according to CFO Walt Hulse, who stated on the call that "management still expects to recommend annual dividend increases of approximately 9%-11% beginning in 2018." Furthermore, he noted that the company also anticipates covering that growing payout with cash flow by at least 1.2 times. That's just what income investors want to hear because it means the attractive 5.6% dividend yield not only appears safe but should increase at a rapid rate over the coming years.
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Source: Fool.com