Oneok vs. Kinder Morgan: Which Pipeline Stock Offers Better Dividends?

These two high-yielding pipeline companies have different approaches to dividends and growth.

Published on Feb. 15, 2026

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Oneok and Kinder Morgan are leading pipeline companies that offer attractive dividends. Oneok has a higher current yield of over 5% and plans to grow its payout by 3-4% annually, while Kinder Morgan has a lower 3.7% yield but more growth potential from its $10 billion in expansion projects. The choice comes down to whether investors prioritize higher current income or greater total return potential.

Why it matters

Pipeline companies like Oneok and Kinder Morgan are popular among income-oriented investors due to their stable cash flows and generous dividends. Understanding the differences in their dividend strategies and growth outlooks can help investors decide which stock better fits their investment goals.

The details

Oneok has a strong track record of over 25 years of dividend stability and growth, having increased its payout by nearly 100% in the past decade. The company aims to pay out less than 85% of its cash flow in dividends, retaining capital to fund organic growth projects. Kinder Morgan, on the other hand, cut its dividend over a decade ago to focus on expansion, and now has a lower payout ratio around 50%. Both companies have solid financial profiles, with leverage ratios in the 3.5-4.5 times range.

  • Oneok recently hiked its dividend by 4% for 2026.
  • Kinder Morgan expects to raise its dividend by around 2% this year, marking its ninth consecutive annual increase.

The players

Oneok

A diversified energy midstream giant with a strong track record of dividend stability and growth.

Kinder Morgan

A natural gas pipeline company that cut its dividend over a decade ago to focus on expansion, but now has a lower payout ratio.

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What’s next

Oneok expects to capture hundreds of millions of dollars in annual commercial synergies from three major acquisitions it has completed in recent years, which should support its dividend growth. Kinder Morgan has $10 billion in expansion projects in its backlog that it expects to complete by 2030, which should fuel its earnings and dividend growth.

The takeaway

Investors looking for higher current income should consider Oneok, while those seeking greater total return potential may prefer Kinder Morgan. The choice comes down to whether prioritizing a higher dividend yield or stronger dividend growth is more important to an investor's goals.