ONEOK Inc (NYSE:OKE) disclosed a dividend increase and share repurchase enhancement, thereby boosting investor’s confidence.
Dividend: The company raised its quarterly dividend per share by 3.7% to $0.99, which resulted in an annualized dividend per share of $3.96.
The dividend is payable on February 14, 2024, to shareholders of record as of business January 30, 2024.
OKE is targeting an annual dividend growth rate of 3% to 4% in the future.
Repurchase: Also, OKE’s board authorized a $2 billion share repurchase program and expects it to be completed in the next four years.
Notably, in Q4, OKE repurchased around $300 million of face value of its outstanding notes at a discount to par value and finished the year with about $340 million cash.
Overall, with the combination of dividends and share buybacks, the company expects to achieve a target of about 75% to 85% of forecasted cash flow from operations after capital expenditures in the next four years.
Also, OKE remains committed to its previously stated target debt-to-EBITDA ratio of about 3.5x.
Also Read: ONEOK Standing Tall Among Large Peers, Analyst Upgrades Stock
Price Action: OKE shares are trading higher by 0.94% at $69.71 premarket on the last check Thursday.
