Want Passive Income You Can Bank On? Buy This Elite 5.1%-Yielding Dividend Stock And Never Look Back.

Oneok (NYSE: OKE) currently offers a 5.1% dividend yield. That's enticing at a time when the S&P 500's dividend yield is down to around 1%, its lowest level since the 1800s.

While a higher dividend yield often indicates that a company has a higher risk profile, that's not the case with Oneok. You can buy the high-yielding pipeline stock for passive income and never look back.

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As bankable as you'll find

Oneok has a rock-solid record of paying dividends. The pipeline company has delivered more than 30 years of dividend stability and growth. While Oneok hasn't increased its dividend every year, it has steadily grown its payment over the long term, including by nearly 100% over the past decade.

The energy company's high-yielding payout is currently on a rock-solid foundation. Oneok generates very stable cash flows. Three of its four business segments expect to get around 90% of their earnings from fee-based sources this year, while the fourth segment anticipates fee-based sources will supply about 85% of its earnings this year. Oneok also has a strong investment-grade credit rating and a conservative dividend payout ratio. That gives the company the financial flexibility to invest in growing its operations, which should support continued dividend increases. Oneok is targeting annual dividend growth of 3% to 4%.

Dual growth drivers

Oneok has two main growth drivers. The pipeline company has made several large-scale acquisitions in recent years (Magellan, Medallion, and EnLink) to enhance its scale and diversify its platform. It's still capturing merger synergies from these deals, including more than $150 million expected in 2026 and additional captures anticipated in 2027 and beyond. Oneok has the balance sheet strength to close additional deals as opportunities arise. For example, it acquired the remaining interest in its Delaware Basin joint venture last year for $940 million in stock and cash. Future deals will provide incremental sources of income and growth.

Additionally, the company has several organic expansion projects currently under construction. Notable projects include a $1 billion investment in the Texas City Logistics Export Terminal Joint Venture and its participation in a joint venture to build the Eiger Express Pipeline. The company expects these and other projects to enter commercial service through 2028. Meanwhile, Oneok sees more growth opportunities ahead, especially to support growing gas demand, driven by data centers and liquefied natural gas exports. These projects will help support Oneok's dividend growth plan.

A forever dividend stock

Oneok has been a very reliable dividend stock over the past few decades. It's in a strong position to continue delivering sustainable dividend income to investors going forward. As a result, you can confidently buy shares of the pipeline stock and relax knowing that a growing stream of dividend income should steadily flow into your portfolio.

Matt DiLallo has no position in any of the stocks mentioned. The Motley Fool recommends Oneok. The Motley Fool has a disclosure policy.