OKE - ONEOK: Surprisingly Strong Performance Bringing About A New Era For Their Dividends

• After fighting to sustain their burdensomely large dividends during 2020 and the start of 2021, ONEOK has since seen surprisingly strong performance.
• Their operating cash flow has surged a very impressive 30%+ year-on-year during 2021, which saw their dividend coverage reach over 100% for the first time.
• Based upon their guidance for 2022, this appears set to continue and thus brings about a new era of more sustainable dividends.
• This has also seen their leverage decrease significantly during 2021 and should continue trending lower during 2022, thereby further lowering risks.
• Despite being positive, I still believe that maintaining my hold rating is appropriate given their share price is near its all-time high and their dividend growth prospects are rather low.

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