This Magnificent High-Yield Dividend Stock Is Making $5.9 Billion of Acquisitions to Supercharge Its Growth Engine
Oneok (NYSE: OKE) has done a magnificent job paying dividends over the years. The pipeline giant has delivered over a quarter-century of dividend stability and growth. While it hasn't increased its payout every single year, it has grown its dividend by a peer-leading rate of more than 150% over the last decade.
The pipeline stock is now adding even more fuel to grow its high-yielding dividend (recently around 4.5%). It's making two acquisitions to enhance its footprint, cash flow, and ability to return cash to investors. That will make it an even more attractive investment for those seeking a growing income stream.
Oneok has agreed to a series of deals with leading infrastructure investor Global Infrastructure Partners (GIP). It's buying GIP's 43% interest in fellow pipeline company EnLink Midstream (NYSE: ENLC) for $3 billion in cash. It's also paying $300 million in cash for 100% of the interests in the managing member. The deal values EnLink at $14.90 per share, a 12.8% premium to its closing price on Aug. 27, the day before the deal's announcement. In addition, Oneok is buying Medallion Midstream from GIP for $2.6 billion in cash.
Source Fool.com
