ONEOK dividend: cash coverage and yield
ONEOK raised its quarterly dividend to $1.07 in January 2026. In 2025, cash from operations less capital spending was less than the $2.6 billion dividend, so coverage depends on how free cash flow is defined.
How much does ONEOK pay shareholders?
ONEOK also authorized up to $2 billion of share repurchases and raised its quarterly dividend to $1.07 in January 2026. Those payments can reward shareholders, but they compete with debt reduction and construction when payouts exceed free cash flow. Comparable midstream companies had a median debt-to-EBITDA ratio of 3.4x in 2025, giving investors a reference point for the burden ONEOK must manage.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| − Dividends paid, per share | 4.13 | 3.94 | 3.79 | 3.73 | 3.73 |
| − Share buybacks, per share | 0.12 | 0.27 | 0.00 | 0.00 | 0.00 |
| = FCF not paid out, per share | 0.56 | 2.03 | 0.07 | 0.41 | |
| = Paid out more than FCF, per share | 0.41 |
What this means. In 2025, the company paid out $0.41 more per share than its free cash flow, so it had to use other cash or borrow money.
Is ONEOK’s dividend covered by its cash?
Cash is the stricter test. In 2025, operating cash flow was $5.599 billion and capital expenditures were $3.152 billion. That simple difference was less than the $2.6 billion dividend, so the definition of free cash flow matters. Maintenance spending keeps existing assets safe; growth spending adds capacity. Both consume cash today.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 2,447 | 2,867 | 2,826 | 1,704 | 1,849 |
| − Dividends paid | 2,583 | 2,313 | 1,839 | 1,672 | 1,667 |
| − Share buybacks | 75 | 159 | 0 | 0 | 0 |
| = Free cash flow not paid out | 329 | 987 | 32 | 182 | |
| = Paid out more than the free cash flow | 258 | ||||
| Paid out, % of free cash flow | 108.6% | 86.2% | 65.1% | 98.1% | 90.2% |
What this means. In 2025, the company paid out 258 million dollars more than its free cash flow, so it had to use savings or borrow money to cover the difference.
What could change ONEOK’s dividend?
Management guided to 2026 adjusted EBITDA of $8.2–$8.5 billion. It guided to total capital expenditures of $2.7–$3.2 billion. Its diluted EPS range is $5.38–$5.99, alongside a 3%–4% annual dividend-growth target. Management targets 3.25x debt-to-EBITDA leverage for 2027.
Dividends grow from $4.37 to $4.64 per share in the base case. The bear case falls from $4.28 to $3.85 after a cut. The bull case rises from $4.41 to $4.76. Base growth follows the low end of management’s 3%–4% target, while the downside reflects dividends exceeding free cash flow in 2025 and a reported 2026 funding gap.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| EBITDA | 8,850 (7,900 / 9,000) | 9,380 (8,000 / 9,720) | 9,940 (8,300 / 10,498) |
| Dividends per share | 4.37 (4.28 / 4.41) | 4.50 (3.85 / 4.58) | 4.64 (3.85 / 4.76) |
| Net debt | 28,339 (29,621 / 27,942) | 28,256 (30,921 / 27,461) | 27,816 (31,871 / 26,473) |