In this article, we discuss 5 blue-chip dividend stocks with over 5% yield. If you want to read our detailed analysis of dividend stocks and their returns over the years, go directly to read 10 Blue Chip Dividend Stocks with Over 5% Yield.
5. ONEOK, Inc. (NYSE:OKE)
Dividend Yield as of July 16: 6.71%
ONEOK, Inc. (NYSE:OKE) is an Oklahoma-based natural gas liquids company and a leading midstream service provider in the US.
ONEOK, Inc. (NYSE:OKE) stopped increasing its dividend during the pandemic of 2020 but has been paying uninterrupted dividends for the past 25 years. In the past five years, the company raised its dividend at a CAGR of 8.7% and has a payout ratio of 67%. In the past year, ONEOK, Inc. (NYSE:OKE) paid over $1.6 billion in dividends to shareholders. The company’s current quarterly dividend stands at $0.935 per share, with a dividend yield of 6.71%, as of July 16.
In May, Morgan Stanley raised its price target on ONEOK, Inc. (NYSE:OKE) to $81 with an Equal Weight rating on the shares, presenting a bullish outlook on the midstream sector.
At the end of Q1 2022, 25 hedge funds tracked by Insider Monkey owned stakes in ONEOK, Inc. (NYSE:OKE), the same as in the previous quarter. These stakes hold a collective value of $174.3 million, up from $94.5 million worth of stakes owned by hedge funds in Q4 2021. Ken Griffin and Israel Englander were the company’s most prominent stakeholders in Q1.
“In late August, we increased the portfolio’s cyclical exposure by trimming utilities after a period of relative outperformance and reallocating the capital to midstream energy, which had pulled back over the summer. We added ONEOK Inc. (OKE) with the expectation that it will benefit from increasing natural gas and natural gas liquids (NGL) recovery in the Bakken region.”