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2 High-Quality, High-Yielding Dividend Stocks You Won't Want to Miss
The Motley Foolยท 2025-08-07 10:17
Core Viewpoint - The energy sector presents high-quality, high-yielding dividend stocks, with Oneok and Williams being notable examples for income-seeking investors [1] Group 1: Oneok - Oneok has a track record of over 25 years of dividend stability and growth, with its payout nearly doubling over the past decade, currently yielding almost 5.5% [3][4] - The company's adjusted EBITDA surged 22% in the second quarter, driven by acquisitions, generating over $2.4 billion in cash in the first half of the year, comfortably covering its dividend payments of less than $1.3 billion [4] - Oneok has several organic expansion projects underway, including relocating a gas processing plant and expanding its pipeline system, which are expected to boost earnings and cash flow in the coming years [5][6] Group 2: Williams - Williams has paid dividends for over 50 years, achieving a 6% compound annual dividend growth over the past five years, with a current yield of nearly 3.5% [8][9] - The company increased its adjusted EBITDA by 8% in the first quarter, with cash flow from operations rising 13%, allowing it to cover its dividend by 2.2 times [9] - Williams is engaged in multiple organic growth projects, including a $1.6 billion power innovation project and expansions of its Transco gas pipeline, which are expected to support future dividend increases [10][11] Group 3: Investment Appeal - Both Oneok and Williams offer high-yielding dividends supported by growing cash flows and strong financial profiles, making them attractive options for investors seeking stable and rising streams of passive income [12]