This 5.7%-Yielding Dividend Stock Has Significant Upside Potential
Oneok (NYSE: OKE) recently closed its acquisition of Magellan Midstream Partners. The deal brought together two large-scale energy infrastructure businesses to create one larger, more diversified midstream company. Oneok expects the combination with Magellan will fuel meaningful earnings and cash-flow growth over the next several years.
There's lots of upside potential to that deal. Oneok's ability to capture that opportunity could give the pipeline company more fuel to grow its 5.7%-yielding payout in the coming years.
Oneok expects its acquisition of Magellan will be immediately accretive to its earnings per share next year. It then sees the deal adding 3%-7% annually to its bottom line in the 2025 to 2027 time frame. The company expects even stronger free cash flow per share accretion of over 20% annually from 2024 to 2027.
Source Fool.com
