ONEOK, Inc. Takes Another Big Step Forward to Lock in High-End Dividend Growth
When ONEOK (NYSE: OKE) announced its five-year growth plan earlier this year, it was a bit light on the details. The company said that by merging with its MLP, it could increase its dividend by 21% this year -- which it delivered in July -- and then at a 9% to 11% rate from 2018 through 2021. Supporting that view was its belief that it could complete $1.5 billion to $2.5 billion of high-return growth projects over that time frame, which would provide it with the cash flow needed to support dividend growth.
That said, unlike most rivals, ONEOK didn't have that backlog locked down, which increased the risk that it could fall short. However, the company has since secured more than $500 million of expansion projects, including announcing plans to expand its West Texas LPG joint venture with Martin Midstream Partners (NASDAQ: MMLP). Because of that, it's looking more likely that ONEOK will be a goldmine for income investors.
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Source: Fool.com
