Morgan Stanley Maintains Equal-Weight on ONEOK, Raises Price Target to $105

Shares of natural gas midstream and marketing companies are trading higher amid multiple catalysts that include reports suggesting that lower Qatari LNG exports will benefit the U.S. natural gas industry and renewed attention on pipeline FCF generation and dividends. Also, DT Midstream was raised from Peer Perform to Outperform by Wolfe Research.

1 High-Yield Pipeline Stock Investors Keep Underestimating

ONEOK (OKE) has surged 30.6% year-to-date, outperforming the Alerian Midstream Energy Index by 68 basis points. Despite offering a 4.5% dividend yield and recent 4% payout increase, the stock may still be underestimated by investors. The company raised its 2026 earnings guidance and secured a deal to power AI data centers, positioning it as a beneficiary of growing natural gas demand driven by data center expansion.

If You'd Invested $10,000 in Each of These 3 High-Yield Stocks 10 Years Ago, Here's How Much Income You'd Collect Today

A comparison of three high-yield dividend stocks over the past decade reveals that dividend growth matters more than initial yield. AGNC Investment's dividend income fell 33% due to interest rate changes, while Ares Capital grew dividends 26% and ONEOK increased them 74%. ONEOK delivered the highest total return despite having the lowest initial yield, demonstrating that earnings growth and dividend growth are more important long-term factors than high starting yields.