5 Best Income Stocks To Invest In

3. ONEOK, Inc. (NYSE:OKE)

Number of Hedge Fund Holders: 25

Dividend Yield (as of May 7): 6.06%

ONEOK, Inc. (NYSE:OKE) is an American diversified corporation focused primarily on the natural gas industry. Based in Oklahoma, the company is engaged in processing, storing, and transporting natural gas in the United States. The gas company delivers a dividend yield of 6.06% as of May 7. ONEOK, Inc. (NYSE:OKE) on April 21 declared a $0.935 per share quarterly dividend, in line with previous. The dividend is payable on May 16.

Morgan Stanley analyst Robert Kad raised his price target on ONEOK, Inc. (NYSE:OKE) to $81 from $70 and kept an Equal Weight rating on the shares of the company. He remains bullish on the outlook for the midstream sector over the balance of 2022 and generally expects strong Q1 prints and constructive management outlooks given the favorable commodity backdrop.

According to Insider Monkey’s Q4 database, 25 hedge funds were long ONEOK, Inc. (NYSE:OKE), up from 18 funds in the prior quarter. The total stakes owned in the fourth quarter of 2021 amounted to $94.5 million. Phill Gross and Robert Atchinson’s Adage Capital Management is the largest shareholder of the company, with 475,200 shares worth roughly $28 million.

Miller Howard Investments, in its Q3 2021 investor letter, mentioned ONEOK, Inc. (NYSE:OKE) and discussed its stance on the firm. Here is what the fund said:

“In late August, we increased the portfolio’s cyclical exposure by trimming utilities after a period of relative outperformance and reallocating the capital to midstream energy, which had pulled back over the summer. We added ONEOK Inc. (OKE) with the expectation that it will benefit from increasing natural gas and natural gas liquids (NGL) recovery in the Bakken region.”