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This Energy Stock Still Has No Plans of Cutting Its 13.7%-Yielding Dividend

DATE POSTED:August 2, 2020

Shares of pipeline giant ONEOK (NYSE: OKE) have cratered more than 60% this year. That sell-off has pushed the company's dividend yield up to an eye-popping 13.7%. One of the main factors weighing on its valuation is the impact of this year's oil market downturn on ONEOK's volumes and cash flow. These headwinds have put some pressure on its balance sheet, causing concerns about the dividend's sustainability.

However, ONEOK has made several moves over the past few months to shore up its financial position, and the management team reaffirmed its belief in the current dividend on the second-quarter conference call. Here's why the company's managers don't currently see a need to cut the payout as well as what could change their mind. 

Image source: Getty Images.

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