My Financial Independence Journey » Investment portfolio » Recent Buy – ONEOK Inc (OKE)

Recent Buy – ONEOK Inc (OKE)

July 23rd, 2013 | 7 Comments

As part of my commitment to keep my readers up to date on my portfolio, I write up short posts describing my transactions.  Recently, I purchased 26 shares of ONEOK Inc (OKE).

These 26 shares have a total cost basis of $1,115.40, which works out to about $42.90 per share.  I feel that this is a fair value, especially given currently overvalued nature of the market.  OKE’s current forward dividend is $1.44 per share.  So this amounts to a 3.36% starting yield.  This purchase will increase my dividend stream by $37.44 per year.  The starting yield is about on par with what I would like to see, and I feel that this company is overall fair valued.

I’m not planning another purchase until maybe mid August sometime, since that is when I’m expecting to get a new influx of capital.

Disclosure:  I am long OKE.

Readers:  What do you think of this purchase?

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Written by MFIJ

Filed under: Investment portfolio · Tags: oke, oneok, recent buy

7 Responses to "Recent Buy – ONEOK Inc (OKE)"

1. Mike says:

   July 23, 2013 at 10:14 am

   Awesome!!
   Congrats on your hard work!.

   Quick question, do you DRIP or do you collect and then reallocate? Sorry if this has been mentioned before?

   Reply
   1. MFIJ says:

      July 24, 2013 at 5:30 am

      I don’t do DRIP investing. I collect my dividends, combine them with freshly added capital and then try to buy whatever stock is fairly valued at the moment.

      Reply
      1. Mike says:

         July 24, 2013 at 9:22 am

         Thanks for the reply!

         Reply
2. Doug says:

   July 25, 2013 at 10:17 am

   Quite the buy with the news of their separation / stock DIV of their natural gas business. “ONEOK expects a higher dividend than has been paid historically. It seems $1.1B-$1.2B one-time cash distribution from ONE Gas.”

   Reply
   1. MFIJ says:

      July 26, 2013 at 5:19 am

      I was rather shocked when I read the news. I usually don’t get that lucky.

      Reply
3. Dividend Mantra says:

   July 25, 2013 at 7:36 pm

   MFIJ,

   Impeccable timing. Great price too. You got in a little under what I paid, and I thought I got a pretty good deal (I still do).

   The spin-off is good news for shareholders as OKE concentrates on the underlying MLP, but I do wish this news could have waited a bit longer. OKE was high on my watch list for a purchase in August as it was one of the only stocks I own that was trading below my cost basis.

   Great to have you on board as a shareholder.

   Best wishes!

   Reply
   1. MFIJ says:

      July 26, 2013 at 5:36 am

      I was rather amazed at the announcement. I saw the initial price spike while I was at work yesterday and first thought it was some kind of a glitch. Then I poked around a bit more and got around to reading the news and saw the plans for the spinoff. I’m not usually that lucky. OKE was on my short list for August too. But given the huge price run up, it’s probably not on that list any more.

      Reply