KMI vs OKE: Dividend Comparison
Dividend data as of
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.
Verdict
Yield Analysis
OKE yields 1.16% more than KMI. In dollar terms, KMI pays $1.17/share vs OKE's $4.12/share annually.
Dividend Growth
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: 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: 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.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in KMI vs OKE today?
At $32.20 per share, $10,000 buys about 310.6 shares of Kinder Morgan, Inc. (KMI). Each share pays $1.17 per year in dividends, so the position starts out generating roughly $363 per year — about $30 a month.
At $86.11 per share, $10,000 buys about 116.1 shares of Oneok Inc /New/ (OKE). Each share pays $4.12 per year in dividends, so the position starts out generating roughly $478 per year — about $40 a month.
OKE is the larger income stream from day one: $115 per year more on the same $10,000 invested.
What could $10,000 of KMI or OKE income look like in 10 years?
Kinder Morgan, Inc. (KMI) has raised its dividend about 9.6% a year over the past five years. If that pace held, the $377 per year that $10,000 generates today at the current 3.77% yield would reach $940 per year by 2036 — a 9.4% yield on the original cost.
Oneok Inc /New/ (OKE) has raised its dividend about 10.1% a year over the past five years. If that pace held, the $494 per year that $10,000 generates today at the current 4.94% yield would reach $1,291 per year by 2036 — a 12.9% yield on the original cost.
On those trailing rates, OKE pays more in 2036: $1,291 versus $940 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would KMI's dividend growth overtake OKE's higher yield?
It doesn't, on the trailing numbers. Oneok Inc /New/ (OKE) yields more today (4.94% vs 3.77%) and has also grown its dividend at least as fast (10.1% vs 9.6% a year over five years). Unless KMI accelerates its raises or OKE stumbles, KMI never closes the income gap — OKE wins on both current income and growth.
Can KMI and OKE afford their dividends?
Kinder Morgan, Inc. (KMI) earns $1.37 per share against $1.17 paid out in dividends — 1.2x coverage (a 85% payout ratio).
Oneok Inc /New/ (OKE) earns $5.44 per share against $4.12 paid out in dividends — 1.3x coverage (a 75% payout ratio).
Coverage is similar for both, so neither dividend looks meaningfully more stretched than the other on current earnings.
Which fits an early-retirement income portfolio better, KMI or OKE?
For income you need right now, Oneok Inc /New/ (OKE) leads: $100,000 invested today pays about $411 a month at the current 4.94% yield, versus $314 a month from Kinder Morgan, Inc. (KMI) at 3.77%.
OKE also leads on dividend growth (10.1% vs 9.6% a year over five years), so the trailing numbers favor it on both fronts.
Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.
$10,000 with DRIP: projected annual income
If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $1,362/yr in KMI vs $2,090/yr in OKE by year 10.
Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR. A projection, not a prediction — no price appreciation modeled.
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