Core Insights - The article provides an analysis of two key players in the US midstream sector: ONEOK (OKE) and Kinder Morgan (KMI) [1] Company Analysis - ONEOK is in the process of completing the integration of its recent acquisitions, which is expected to enhance its operational efficiency and market position [1] - Kinder Morgan continues to maintain a strong presence in the midstream sector, focusing on its pipeline and storage operations to drive revenue growth [1] Investment Opportunities - The analysis aims to identify actionable investment ideas that can contribute to a balanced portfolio of U.S. securities, particularly in the midstream sector [1] - The focus is on uncovering profitable and undervalued investment opportunities that can yield high returns [1]

Core Insights - The article provides a direct analysis of two players in the US midstream sector: ONEOK (OKE) and Kinder Morgan (KMI) [1] Company Analysis - ONEOK is set to complete the integration of its recent acquisitions, which is expected to enhance its operational efficiency and market position [1] - Kinder Morgan continues to maintain a strong presence in the midstream sector, focusing on its pipeline and storage operations to drive revenue growth [1] Investment Perspective - The analysis aims to identify actionable investment ideas that can contribute to a balanced portfolio of U.S. securities, emphasizing the importance of macro-economic factors and real-world trading experience [1]

Core Insights - High Yield Investor is celebrating its fifth anniversary by offering a 30-day money-back guarantee, encouraging new memberships and the release of their Top Picks for 2026 [1] Company Overview - Samuel Smith, a lead analyst and Vice President at various dividend stock research firms, leads the High Yield Investor group, which focuses on balancing safety, growth, yield, and value in investment strategies [1] - The High Yield Investor group provides real-money core, retirement, and international portfolios, along with regular trade alerts, educational content, and an active chat room for investors [1] Investment Strategy - The article discusses the common perception among investors that there is a trade-off between yield and growth, as well as quality and total return potential, particularly among younger investors [1]

Group 1 - ONEOK, Inc. is identified as a significant player in the energy sector, specifically in midstream energy services, which include gathering, processing, transportation, storage, and export of natural gas and other energy products [2] - The company has underperformed in the market, being described as the "caboose of the sector," with a decline of 27% [1] - Despite its recent performance, there is a belief that ONEOK presents a buying opportunity, as highlighted in investment discussions [1] Group 2 - The energy sector overall has seen a 5% increase for the year, with mixed performances among different types of companies [1] - Integrated oil giants like Exxon Mobil and Chevron have underperformed compared to refiners and natural gas-focused producers [1] - The exploration and production companies have managed only low single-digit growth, indicating a challenging environment for many in the sector [1]

Core Viewpoint - Oneok experienced a significant decline in stock value in 2025, losing 26.8%, despite a strong increase in net income and a robust fee-based earnings model [1][2]. Group 1: Company Overview - Oneok is one of the largest midstream energy companies in the U.S., operating a pipeline network of nearly 60,000 miles, focusing on connecting energy producers with end users [2]. - Approximately 90% of Oneok's earnings are fee-based, which are on the rise, with net income increasing by 14% to $2.4 billion in the nine months ending September 30, 2025 [2]. Group 2: Stock Performance and Challenges - The stock underperformed in 2025 due to a series of large acquisitions that, while expanding the company's footprint, also increased costs and debt, leading to investor concerns [3][5]. - Oneok's long-term debt rose to $32 billion by September 30, 2025, up from $12.7 billion in June 2023, contributing to the stock's pressure throughout the year [6]. Group 3: Future Outlook - Three key catalysts are expected to enhance Oneok's cash flows in 2026: 1. Cost synergies from recent acquisitions, particularly projected at $500 million from Magellan by the end of 2025 [7]. 2. Anticipated reduction in cash tax expenses by nearly $1.5 billion over the next five years due to tax deductions [9]. 3. A decline in capital expenditures post-acquisitions, allowing for increased free cash flow for debt repayment, dividends, and share buybacks, with plans to raise annual dividend payouts by 3% to 4% [9].

Core Viewpoint - Oneok is highlighted as an attractive passive income investment due to its high dividend yield and stable cash flow from long-term contracts [1][3]. Group 1: Dividend and Income Generation - Oneok currently offers a dividend yield of 5.6%, significantly higher than the S&P 500's yield of approximately 1.1% [1]. - The company pays a quarterly dividend of $1.03 per share, which annualizes to $4.12 [4]. - To generate $1,000 in annual dividend income, an investor would need to own about 243 shares, requiring an investment of roughly $17,840 at a stock price of $73.50 [4]. Group 2: Financial Performance and Growth - Oneok has a market capitalization of $47 billion and a gross margin of 19.10% [6]. - The company has a history of over 25 years of dividend stability and growth, with a recent 4% increase in its payout [3][6]. - Oneok aims to increase its dividend by 3% to 4% annually, supported by ongoing investments in high-return expansion projects, including a new LPG export terminal and a natural gas pipeline expected to be operational by 2028 [6].

Core Insights - The article discusses the potential of three dividend stocks: Conagra Brands, Realty Income, and Oneok, which are expected to maintain their dividends and experience price appreciation in the coming years [3]. Conagra Brands - Conagra Brands has seen a year-to-date decline of over 37% due to high inflation and low growth impacting its fiscal performance [4]. - The company faces concerns regarding its $0.35-per-share quarterly dividend, which translates to an 8.0% forward yield, amid fears of a potential dividend cut [5]. - The recently announced "Project Catalyst," which leverages AI technology for operational improvements, could enhance profitability, secure the dividend, and drive stock recovery [6]. - Currently trading at 10 times forward earnings, Conagra's shares could rise with earnings growth and valuation expansion if the turnaround plan is successful [6][7]. Realty Income - Realty Income, a REIT known for monthly dividend payments, has experienced modest gains in 2025 due to uncertainty surrounding potential interest rate cuts by the Federal Reserve [8]. - If interest rates decline further in 2026, Realty Income could see a significant re-rating to the upside, enhancing its cash flow and securing its dividend [7]. Oneok - Oneok, a midstream energy company, is expected to benefit from increased cash flow, indicating a secure dividend and potential share price growth [7].

Industry Overview - Companies in the Zacks Oil and Gas – Production Pipeline sector are crucial for meeting increasing global energy demand by supplying crude oil and natural gas, which are essential for transportation, industrial activities, and households [1] - Their operations enhance energy security, support economic growth, and provide necessary feedstocks for petrochemicals and fertilizers, while also advancing cleaner technologies and carbon-reduction initiatives [1] Company Profiles Energy Transfer LP (ET) - Energy Transfer has a diversified midstream network across natural gas, natural gas liquids (NGLs), crude oil, and refined products, benefiting from stable, fee-based cash flows and strategic access to export terminals [3] - The company is positioned to capture growth from rising U.S. energy production and global demand, with an attractive distribution yield and ongoing balance sheet strengthening through deleveraging [3] - The Zacks Consensus Estimate for ET's earnings per unit indicates year-over-year growth of 3.91% in 2025 and 15.25% in 2026, with long-term earnings growth per share projected at 12.45% [6] ONEOK Inc. (OKE) - ONEOK has a strong investment case due to its extensive NGL infrastructure and strategically positioned pipeline network across major U.S. energy basins, supported by stable, fee-based cash flows and limited commodity exposure [4] - The company is expected to achieve earnings visibility and offers an attractive dividend, with long-term growth driven by reliable income and moderate growth in the midstream energy sector [4] - The Zacks Consensus Estimate for OKE's earnings per unit implies year-over-year growth of 3.48% in 2025 and 9.48% in 2026, with long-term earnings growth per share pegged at 3.06% [9] Financial Metrics - OKE's sales are projected to rise 17.97% in 2026, while ET's sales growth is forecasted at 26.64% for the same period [7][11] - OKE has a higher return on equity (ROE) of 15.12%, surpassing ET's 10.71% and the industry average of 13.28% [13] - ET's current long-term debt-to-capital ratio is 58.87%, slightly lower than OKE's 59.08% [16] Valuation and Price Performance - Energy Transfer is currently trading at a forward 12-month Price/Earnings (P/E) ratio of 10.77X, while ONEOK is at 12.61X, compared to the industry average of 12.23X, indicating ET is trading at a discount [17] - In the past three months, ET's units have declined by 0.7%, while OKE has gained 2.7%, outperforming the sector's overall gain of 1.4% [18] Conclusion - ONEOK's stronger projected sales growth, higher return on equity, and superior price performance, despite a marginally higher reliance on debt compared to ET, suggest it has a competitive advantage [20]

Core Viewpoint - The energy sector is characterized by volatility, but midstream companies like Oneok, Enbridge, and Enterprise Products Partners provide stable income through high dividend yields despite market fluctuations [1][2]. Industry Overview - The energy sector experiences significant profit fluctuations due to the volatility of oil and natural gas prices, impacting stock prices [2]. - Midstream companies operate differently from upstream and downstream companies, focusing on energy infrastructure and generating reliable fees based on energy volume rather than commodity prices [5][6]. Company Summaries - **Oneok (OKE)**: - Current Price: $72.85, Market Cap: $46 billion, Dividend Yield: 5.66% - Has a history of steady dividend growth but has experienced periods of stability without increases [8][10]. - **Enbridge (ENB)**: - Current Price: $47.53, Market Cap: $104 billion, Dividend Yield: 5.67% - Offers a diverse business model that includes regulated natural gas utilities and renewable power assets, making it suitable for investors seeking diversification [9][14]. - **Enterprise Products Partners (EPD)**: - Current Price: $31.87, Market Cap: $69 billion, Dividend Yield: 6.78% - Structured as a master limited partnership (MLP), it has a higher yield due to its tax-advantaged structure, but comes with additional tax considerations [12][11]. Investment Considerations - All three companies provide reliable income streams, making them attractive options for dividend investors, but they are not interchangeable and should be selected based on individual investment goals and tax situations [15].

Core Viewpoint - The energy sector has underperformed compared to the broader market, with average energy stocks in the S&P 500 up about 4% year-to-date, while the broader market index rose nearly 18% due to lower oil prices [1][2] Group 1: ConocoPhillips - ConocoPhillips is a leading oil and gas producer with a diversified portfolio and low operating costs [4] - The company requires an average oil price in the mid-$40s to sustain capital spending and about $10 more per barrel to fund its dividend, currently generating substantial surplus free cash flow with crude oil priced in the low $60s [4][5] - Expected completion of large-scale liquefied natural gas projects and the Willow oil project in Alaska could add an incremental $6 billion in annual free cash flow by 2029, assuming a $60 oil price [5] - ConocoPhillips produced $6.1 billion in free cash flow through the first nine months of the year and recently increased its dividend by 8%, aiming for dividend growth within the top 10% of S&P 500 companies [7] Group 2: Oneok - Oneok is one of the largest energy midstream companies in the U.S., generating stable cash flow supported by long-term contracts and government-regulated rate structures [8] - The company has expanded its midstream platform through acquisitions, including Magellan Midstream Partners and Medallion Midstream, totaling $10.2 billion [10] - Oneok expects to capture hundreds of millions in cost savings and synergies from these acquisitions and has approved several organic expansion projects, which should enhance its dividend growth by 3% to 4% annually [11] Group 3: NextEra Energy - NextEra Energy is a leading electric utility and energy infrastructure development company, with a Florida-based utility generating steadily rising rate-regulated earnings [12] - The company plans to invest upwards of $100 billion by 2032 to support growing energy demand in Florida, alongside investments in electricity transmission lines and clean power projects [14] - Expected compound annual earnings-per-share growth of over 8% over the next decade positions NextEra Energy to increase its dividend by 10% next year and at a 6% compound annual growth rate through at least 2028 [15] Group 4: Overall Investment Potential - ConocoPhillips, Oneok, and NextEra Energy are identified as top energy stocks with visible growth ahead, expected to continue increasing their high-yielding dividends [16]