Reaves W H & Co Inc released its third-quarter 2026 investor letter for “Reaves Dividend Income Strategy”. The letter can be downloaded here. The strategy fell 9.98% (net) in the quarter, underperforming the MSCI USA Infrastructure benchmark’s 5.73% decline. Year-to-date net returns were 2.48%, ahead of the benchmark. Portfolio companies’ cash distributions grew 5.0% over the past 12 months. In the third quarter, rising Treasury yields, inflation risks, and tighter monetary policy weighed on equity markets, though fundamentals of strategy-related companies remain sound. Energy and telecommunications contributed positively, while utilities lagged amid rising rates. Utility holdings retain a favorable outlook, supported by growing electricity demand and infrastructure investment. Expanding AI infrastructure investment also creates opportunities in utilities and essential infrastructure. The strategy remains focused on high-quality businesses with durable cash flows and potential to grow earnings and dividends over the long term. Also, check the strategy’s top five holdings to see its best picks in 2026.
In its Q3 2026 investor letter, Reaves Dividend Income Strategy highlighted ONEOK, Inc. (NYSE:OKE) as a top contributor. ONEOK, Inc. (NYSE:OKE) is a US-based midstream energy company that provides gathering, processing, fractionation, transportation, storage, and marine export services. On October 13, 2026, ONEOK, Inc. (NYSE:OKE) closed at $93.38, with a $58.01 billion market capitalization. ONEOK, Inc. (NYSE:OKE) posted a ~27.05% YTD gain, trading within a 52-week range of $64.02 to $99.85.
Reaves Dividend Income Strategy stated the following regarding ONEOK, Inc. (NYSE:OKE) in its Q3 2026 investor letter:
“ONEOK, Inc. (NYSE:OKE): ONEOK shares benefited from improved operational execution following several quarters of weaker results in 2025. The acquisition of Brazos Midstream also expanded the company’s presence in the Permian Basin, where we continue to see attractive growth opportunities. We believe ONEOK’s diversified asset base, improving execution and strong dividend support a favorable outlook for income and long-term growth.”
Freedom Broker Turns Cautious on ONEOK (OKE) Despite Higher Price Target
ONEOK, Inc. (NYSE:OKE) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held ONEOK, Inc. (NYSE:OKE) at the end of the second quarter, which was 50 in the previous quarter. While we acknowledge the potential of ONEOK, Inc. (NYSE:OKE) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
