Pipeline Stock Face-Off: Is Enbridge or Oneok the Better Buy Right Now?

2 hours ago 3

Matt DiLallo, The Motley Fool

Sat, June 13, 2026 astatine 1:35 PM CDT 4 min read

Pipeline companies tin marque large investments if you privation a unchangeable income. Most pipeline companies ain assets that run nether regulated gross frameworks oregon semipermanent contracts. That gives them the dependable currency travel to wage dividends and put successful increasing their operations.

Enbridge (NYSE: ENB) and Oneok (NYSE: OKE) are 2 of the top pipeline stocks. Here's a look astatine which is the amended bargain close now.

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Pipelines with the prima down the clouds successful the background.

A head-to-head matchup

Enbridge and Oneok person 2 of the champion dividend way records successful the pipeline sector. Canada's Enbridge has paid dividends for implicit 70 years and has accrued its outgo for 31 consecutive years (in Canadian dollars). Meanwhile, Oneok has delivered much than 30 years of dividend stableness and growth. While Oneok hasn't accrued its outgo each twelvemonth during that period, it has grown its dividend by astir 100% implicit the past decade.

Both companies presently connection high-yielding payouts backed by rock-solid fiscal profiles:

Data source: Enbridge and Oneok.

While Enbridge has a higher leverage ratio, it inactive has a beardown investment-grade recognition rating. Further, it generates precise unchangeable currency flow, arsenic regulated complaint structures oregon take-or-pay contracts backmost much than 98% of its earnings. Enbridge besides has a much diversified concern model, including North America's largest state inferior franchise and a increasing renewable vigor platform.

Oneok has been progressively diversifying its platform. The acquisition of Magellan Midstream a fewer years agone added refined products, crude oil, and export terminals to its concern mix. Meanwhile, the institution formed a associated task (JV) with MPLX to physique a $1.4 cardinal LPG export terminal, which should participate work successful aboriginal 2028. Oneok has besides been acquiring and processing much fee-based assets. As a result, 3 of its 4 concern segments expect to make 90% of their net from fee-based sources this year, with the 4th conception anticipated to make 85% fee-based earnings.

Overall, some companies nutrient unchangeable currency flows to screen their high-yielding dividends, which they further enactment with rock-solid fiscal profiles.

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