KMI vs OKE: Dividend Yield, Growth & Safety Comparison
Kinder Morgan, Inc. (KMI) and Oneok Inc /New/ (OKE) are both in the Energy sector, making them natural rivals for dividend investors. OKE offers a significantly higher 4.94% yield compared to KMI's 3.77%, a gap of 1.16%. Both stocks show similar dividend growth rates, each around 9.6% over the past five years. OKE holds the edge in dividend safety with a "Moderate" rating.
Key Metrics Comparison
| Metric | KMI | OKE |
|---|
| Dividend Yield | 3.77% | 4.94% |
| Annual Dividend | $1.17 | $4.12 |
| 5-Year CAGR | 9.6% | 10.1% |
| Payout Ratio | 85% | 75% |
| Consecutive Years | 0 | 0 |
| Price | $32.20 | $86.11 |
Yield Comparison
Oneok Inc /New/ (OKE) currently yields 4.94%, which is attractive for the broader market. That's 1.16% more than Kinder Morgan, Inc. (KMI), which yields 3.77%. In dollar terms, OKE pays $4.12/share annually versus KMI's $1.17/share.
Dividend Growth
Over the past five years, OKE has grown its dividend at a 10.1% CAGR compared to KMI's 9.6%. KMI: Dividend growth is accelerating — the 3-year CAGR of 17.2% exceeds the 5-year rate of 9.6% and the 10-year rate of 13.4%. OKE: Dividend growth is accelerating — the 3-year CAGR of 19.9% exceeds the 5-year rate of 10.1% and the 10-year rate of 9.3%.
Dividend Safety
KMI's dividend safety is rated "At Risk." The payout ratio of 85% is elevated, which may indicate the dividend could be cut if earnings decline. Earnings cover the dividend 1.2x. OKE's dividend safety is rated "Moderate." The payout ratio of 75% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.3x. OKE's payout ratio of 75% is more conservative than KMI's 85%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in OKE generates approximately $494/year in dividend income, compared to $377/year from KMI — a difference of $117/year. At $100,000, that gap widens to $1170/year.
Verdict
- Best for income: OKE
- Best for growth: OKE
- Best for safety: OKE
Frequently Asked Questions
Which has a higher dividend yield, KMI or OKE?
Oneok Inc /New/ (OKE) has a higher dividend yield of 4.94% compared to Kinder Morgan, Inc. (KMI) at 3.77%.
Is KMI or OKE a better dividend growth stock?
Oneok Inc /New/ has the stronger dividend growth with a 5-year CAGR of 10.1%, compared to Kinder Morgan, Inc.'s 9.6%.
Which is safer for dividend income, KMI or OKE?
Kinder Morgan, Inc.'s dividend safety is rated "At Risk" while Oneok Inc /New/ is rated "Moderate." The payout ratio of 85% is elevated, which may indicate the dividend could be cut if earnings decline. Earnings cover the dividend 1.2x. The payout ratio of 75% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.3x.
How much income does $10,000 in KMI vs OKE generate?
A $10,000 investment in KMI generates approximately $377/year in dividends, while the same amount in OKE generates about $494/year.
Which has a lower payout ratio, KMI or OKE?
Oneok Inc /New/ has a lower payout ratio of 75% compared to Kinder Morgan, Inc.'s 85%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
KMI vs OKE: which is better for retirement income?
It depends on your priorities. OKE for current income, OKE for dividend growth, OKE for safety. Many retirement investors hold both for diversification.
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