How To Earn $500 A Month From ONEOK Stock (CORRECTED)

Editor’s Note: This story has been updated to correct the headquarters location of ONEOK, Inc. to Tulsa, Oklahoma.

ONEOK, Inc. OKE has reported its fourth-quarter financial results, which were released after the closing bell on Monday, Feb. 24, 2025.

The Tulsa, Oklahoma-based company reported EPS of $1.57, beating the $1.53 estimate, according to data from Benzinga Pro.

On Feb. 4, ONEOK announced joint ventures with MPLX to build LPG export terminal in Texas City, Texas.

With the recent buzz around ONEOK, some investors may be eyeing potential gains from the company's dividends too. As of now, ONEOK offers an annual dividend yield of 4.20%, which is a quarterly dividend amount of $1.03 per share ($4.12 a year).

So, how can investors exploit its dividend yield to pocket a regular $500 monthly?

To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $142,834 or around 1,456 shares. For a more modest $100 per month or $1,200 per year, you would need $28,547 or around 291 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($4.12 in this case). So, $6,000 / $4.12 = 1,456 ($500 per month), and $1,200 / $4.12 = 291 shares ($100 per month).

Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.

How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price.

For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).

Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.

OKE Price Action: Shares of ONEOK fell 0.5% to close at $98.10 on Friday.