After A Recent Growth Spurt, This 4.9%-Yielding Dividend Stock is Slowing to A Crawl in 2026. Is a Reacceleration Coming?

Oneok (NYSE: OKE) is coming disconnected a beardown year. The pipeline institution delivered double-digit net maturation successful 2026, fueled by higher volumes and its quality to proceed capturing synergies from respective acquisitions completed successful caller years. It has present grown its net astatine a double-digit compound yearly complaint for the past respective years.

While Oneok expects to proceed increasing successful 2026, its maturation complaint volition dilatory considerably. However, that doesn't mean the high-yielding pipeline stock has tally retired of fuel.

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Oneok generated much than $8 cardinal successful adjusted net earlier interest, taxes, depreciation, and amortization (EBITDA) past year, an 18% summation from 2024. That marked the company's 12th consecutive twelvemonth of increasing its adjusted EBITDA, which has expanded astatine a 17% compound yearly complaint during that clip frame. Oneok besides grew its net per stock by 11% and has grown it astatine a 13% compound yearly complaint since 2017.

The institution benefited from higher volumes, fueled successful portion by the acquisitions of EnLink and Medallion successful 2024. It besides captured different $250 cardinal of synergies from those deals and its acquisition of Magellan Midstream. These positives much than offset the interaction of little commodity prices and immoderate different headwinds.

Oneok expects to make betwixt $7.9 cardinal and $8.3 cardinal of adjusted EBITDA this year, up somewhat from past twelvemonth at the midpoint. The institution anticipates capturing an further $150 cardinal of outgo savings, benefiting from higher volumes crossed its bequest operations, and completing its Denver refined products strategy enlargement project. However, headwinds from higher firm costs and little commodity pricing successful definite regions volition offset overmuch of that growth.

While Oneok's maturation volition dilatory to a crawl this year, it has much maturation coming down the pipeline. The institution expects to implicit the rebuild of its Medford NGL Fractionator successful 2 phases (fourth-quarter 2026 and first-quarter 2027 expected completion dates) and start-up its Bighorn Processing Plant by the mediate of adjacent year. Meanwhile, 2028 volition beryllium a large twelvemonth for completing enlargement projects. Oneok is investing $1 cardinal successful a associated task (JV) to physique the Texas City Logistics export terminal and the related MBTC Pipeline. Both projects should participate commercialized work successful aboriginal 2028. The institution is besides portion of a JV gathering the Eiger Express Pipeline, which should participate commercialized work successful mid-2028. The JV precocious accrued that project's capableness from 2.5 cardinal cubic feet per time (Bcf/d) to 3.7 Bcf/d.