So far, ONEOK (OKE) has fallen nearly 6% in 2017. In comparison, Enterprise Products Partners (EPD) and Targa Resources (TRGP) have fallen 4% and 19%, respectively, during the same period. Crude oil prices have fallen nearly 6% year-to-date. The energy sector has underperformed broader markets in 2017 due to sustained weakness in crude oil prices. The Energy Select Sector SPDR ETF (XLE) has fallen nearly 12% in 2017.
The above graph compares the stock performance of ONEOK, Enterprise Products Partners, and Targa Resources with the Alerian MLP ETF (AMLP) and crude oil. ONEOK has risen 5.6% since June 30, 2017—the day it completed the acquisition of ONEOK Partners. For a deeper analysis of ONEOK’s performance, read Analyzing ONEOK’s Growth Prospects in 2017 and Beyond.
ONEOK is trading at dividend yield of ~5.3%—higher compared to ~2.6% for Kinder Morgan (KMI) and ~4.9% for Magellan Midstream Partners (MMP). However, it’s lower compared to ~6.4% for Enterprise Products Partners. Currently, AMLP trades at a yield of ~7.7%, while broader markets (SPY) yield nearly 2%. The energy sector forms ~6% of the S&P 500 Index (SPX-INDEX).
To learn about the top ten yielding MLPs, read These 10 MLPs Offer the Highest Yields.
According to the latest filings, the top ten institutional investors added net 0.8 million ONEOK shares to their positions. To learn more, read What Institutional Investors’ Activity in ONEOK Indicates.
ONEOK had a short rally since mid-August, but it has fallen in the last few trading sessions. In the next part, we’ll discuss what ONEOK’s moving averages indicate about its future movement.