1 High-Yield Pipeline Stock Investors Keep Underestimating

ONEOK has climbed 30.6% year-to-date, outpacing the Alerian Midstream Energy Index by 68 basis points, yet the midstream operator continues to trade with a 4.5% dividend yield that suggests the market hasn't fully priced in recent developments. The company raised its dividend 4% and lifted 2026 earnings guidance, signaling management confidence in its growth trajectory.

The catalyst extending beyond typical midstream fundamentals: ONEOK secured a deal to supply natural gas to power AI data centers, positioning the company to capture demand from one of the energy sector's fastest-growing end markets. Data center expansion has emerged as a structural driver for natural gas consumption, and ONEOK now has direct exposure to that trend alongside its traditional gathering, processing, and pipeline operations.

The stock's outperformance reflects both the dividend increase and the strategic pivot toward high-growth demand sources. With the 2026 guidance raise, management is signaling that the AI infrastructure opportunity represents material earnings upside, not just a headline partnership.