Why ONEOK Partners Is Ready to Rebound

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, natural gas pipeline operator ONEOK Partners has earned a coveted five-star ranking.

With that in mind, let's take a closer look at ONEOK and see what CAPS investors are saying about the stock right now.

ONEOK facts

Headquarters (founded)

Tulsa, Okla. (1993)

Market Cap

$12.5 billion

Industry

Oil and gas storage and transportation

Trailing-12-Month Revenue

$10.4 billion

Management

Chairman/CEO John Gibson

CFO Derek Reiners

Return on Equity (average, past 3 years)

19.8%

Cash/Debt

$963.7 million / $4.8 billion

Dividend Yield

4.9%

Competitors

El Paso

Enbridge

Kinder Morgan Energy Partners


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 673 members who have rated ONEOK believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star TMFDeej, succinctly summed up the ONEOK bull case for our community:

I'm a big fan of companies with below-average distributions or dividend yields that will likely increase significantly in the near future. That's exactly what we have in [ONEOK].

While its current yield of 4.7% is a little below average compared to its competitors, the company has $7 billion worth of expansion projects scheduled to come online over the next year or two. That's a lot of growth that will likely translate into a significant increase in its distribution and hopefully in turn its share price.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, ONEOK may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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The article Why ONEOK Partners Is Ready to Rebound originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends ONEOK Partners, L.P. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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