Oneok (OKE +1.14%) is a high-octane income producer. The pipeline company currently has a 5.6% dividend yield. That's several times higher than the S&P 500, which only yields about 1.1% these days.
Here's a look at how many shares of this passive income gold mine you'd need to own to generate $1,000 of dividend income each year.
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A passive income machine
Oneok's extensive pipeline operations generate very stable cash flow backed primarily by long-term, fixed-fee contracts. That enables the energy company to pay a very predictable dividend. Oneok has delivered more than a quarter-century of dividend stability and growth.
The pipeline company currently pays a quarterly dividend of $1.03 per share ($4.12 annualized). At that rate, you'd need to own almost 243 shares to generate $1,000 of annual dividend income from Oneok. With its stock price recently around $73.50 apiece, you'd need to invest roughly $17,840 into Oneok to produce $1,000 of annual dividend income. That's considerably less than the more than $87,700 you'd need to invest in an S&P 500 index fund to produce the same amount of annual dividend income.
NYSE: OKE
Key Data Points
Oneok's income stream should steadily rise each year. The pipeline company boosted its payout by 4% in early 2025. That aligns with its target of raising its dividend by 3% to 4% annually. Oneok has plenty of growth coming down the pipeline. The company is investing in several high-return expansion projects, including a new LPG export terminal and a natural gas pipeline that should enter commercial service in 2028. These and other growth drivers should provide Oneok with ample fuel to continue increasing its high-yielding dividend, making it an ideal investment for passive income.
