Oneok's 5.69% Dividend and Rising AI Energy Demand: A Stock to Watch Now

October 8, 5:44 am

Oneok, Inc. (OKE) has emerged as a compelling opportunity for investors looking for a blend of steady income, long-term growth potential, and data-driven signals that point to strength. As one of the leading midstream service providers in the United States, Oneok plays a crucial role in the natural gas liquids (NGL) market, connecting production centers to end-users through its expansive pipeline and storage infrastructure.

While traditional energy investments may feel outdated in the age of tech dominance, Oneok presents a counter-narrative: a company that is financially sound, operationally essential, and delivering tangible value through dividends and infrastructure-backed revenue.

Oneok’s Core Business: Critical Energy Infrastructure

Oneok operates one of the country’s premier NGL systems. Its services span the full midstream chain: gathering, processing, fractionation, transportation, and storage. These capabilities make it indispensable in transporting raw natural gas liquids from production basins like the Permian and Williston to major hubs and refineries.

This business model is not just resilient but also scale-protected. Global energy demand is rising mainly because of the explosion in AI and data center development. AI workloads and cloud infrastructure require massive amounts of electricity, and many hyperscale data centers are being built near energy infrastructure nodes. As a result, natural gas is gaining renewed importance as a reliable, lower-carbon transition fuel. Oneok is positioned at the center of this durable and increasingly essential energy supply chain.

Its assets are difficult to replicate, highly regulated, and geographically strategic - advantages that translate to long-term cash flow stability.

Financial Performance: Revenue and Earnings on the Rise

Oneok has demonstrated consistent financial improvement, outperforming expectations in recent quarters. In the twelve months ending June 30, 2025, the company posted:

• Revenue of $27.95 billion, up 46.36% year-over-year
• Earnings per share (EPS) of $1.34 for Q2 2025, exceeding analyst estimates
• Forecasted annual earnings growth of 8.69%
• Past 12-month earnings growth of 20.8%

These numbers reflect strong demand for midstream services, disciplined cost management, and an ability to scale operations profitably. Importantly, this growth is being achieved without high levels of leverage, which provides a margin of safety for long-term shareholders.

The Dividend: A Key Feature for Income Investors

One of the standout features of Oneok is its dividend. The stock currently yields 5.69%, and this payout is not only high - it is also reliable and growing.

Oneok has a history of increasing its dividend, and the company is expected to continue growing it in the mid to upper single digits annually. For investors seeking income in a market where fixed income yields are increasingly volatile, this makes OKE a particularly attractive stock to hold.

A high dividend, backed by strong and growing cash flows, adds a layer of cushion during market downturns and compounds returns over time.

Analyst Ratings Reinforce Bullish Outlook

Wall Street remains bullish on Oneok. Recent analyst updates include:

• Morgan Stanley: Overweight (08/26/2025)
• Raymond James: Outperform (07/22/2025)
• Scotiabank: Sector Outperform (07/15/2025)
• JP Morgan: Overweight (07/03/2025)

This consensus among top-tier investment firms signals strong institutional confidence in the company’s financial outlook and execution strategy.

Alternative Data Insights: Signals Beyond the Financials

Beyond balance sheets and earnings calls, alternative data points reveal deeper insights into Oneok’s momentum and operational strength. These indicators are particularly valuable for retail investors looking to stay ahead of the market by tracking real-time activity and sentiment. Here are some of the most compelling alternative data trends:

1. Web Traffic: A Digital Pulse on Investor and Customer Interest

Traffic to Oneok’s official website is up 50% in the last three months. While this may not be directly tied to consumer sales, spikes in web traffic often signal growing institutional and investor interest, research activity by analysts, or engagement from industry partners.

2. Job Postings: Hiring Reflects Confidence and Expansion

Oneok’s job postings are up 40% over the last year. Companies that are hiring aggressively are often preparing for expansion, upgrading operations, or entering new markets. It’s a forward-looking signal that indicates confidence in the company’s growth trajectory.

In sectors like energy infrastructure, where capital investment cycles are long, an increase in job listings is typically tied to new project launches, maintenance upgrades, or regional buildouts.

3. Employee Sentiment: Inside-Out Validation

According to employee review platforms, 85% of current employees have a positive business outlook. This marks a 13% increase over the past year — a substantial improvement that speaks to internal morale, leadership effectiveness, and belief in the company’s future.

High employee sentiment often correlates with better execution, stronger retention of top talent, and a strong stock price.

Together, these alternative data points build a case that Oneok is not only performing well financially but is also gaining strength operationally, and digitally.

Taking in financial data, technical analysis and alternative data insights, OKE currently has an AI score of 71 - a buy signal.

Stock Price Snapshot

Despite these strengths, the stock is currently trading at $72.45 per share, down 9% over the past three months. For long-term investors, this dip may offer an attractive entry point. The market's short-term reaction could be tied to broader energy sector volatility, but the underlying fundamentals remain intact.

A temporary price decline amid rising earnings, growing dividends, and positive alternative signals may present a rare buying opportunity.

What to Watch Next

The upcoming Q3 2025 earnings report, scheduled for October 29, will be a critical moment for the stock. Investors should look for continued EPS beats, capital expenditure updates, and any guidance related to dividend growth or new pipeline projects.

In parallel, keep monitoring:

• Web traffic trends to gauge investor interest
• Job postings as a proxy for expansion
• Employee outlook for internal momentum shifts

Platforms like ours aggregate these alternative data streams and help investors visualize signals that are often invisible in quarterly filings.

Final Thoughts

Oneok represents a combination of:

• High and growing income through dividends
• Operational resilience backed by essential infrastructure
• Earnings growth supported by expanding margins
• Alternative data insights that confirm growth and potential

For income-seeking investors and long-term holders who value both traditional metrics and forward-looking signals, Oneok deserves a spot on the radar, and maybe even in the portfolio.

With a solid earnings track record, a dividend yield that outpaces inflation, and encouraging signals from both Wall Street and alternative data sources, Oneok may just be one of the more underrated buys in today’s market.

Disclaimer: The information provided is for educational and informational purposes only and should not be construed as financial or investment advice. All investments involve risk, and you should conduct your own research or consult a qualified professional before making any investment decisions.

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