ONEOK Inc. (OKE) Valuation Update - Mar 27

[dan_s]

I have finished my review of our updated profile on ONEOK (OKE), one of the large-cap midstream companies in our High Yield Income Portfolio.

I rate it A++ for safety of the dividend, with 99% confidence that they will raise dividends year-after-year. The recent merger with Magellan Midstream Partners has created one of the strongest midstream companies in North America. Based on the Company's guidance, free cash flow from operations should be over $3 billion this year (~$5.35/share), which compares to their current dividend of $0.99/quarter.

At the time of this post the stock was trading at $79.00. My current valuation is $84.00, which compares to TipRanks' price target of $82.00.

If you are building a portfolio that will generate dependable dividend income, then OKE is for you.

The updated profile will be posted to the EPG website later today.