Williams Diversifies Its Pipeline Income Amidst $40 Oil Price

The $40 oil price has left many energy dividend investors wondering which pipeline stocks will survive the next downturn. Two Tulsa-based midstream heavyweights, ONEOK (NYSE:OKE) and Williams Companies (NYSE:WMB), have raised payouts in 2026 and weathered past oil crashes.

However, only one of them has an unbroken multi-decade income record. Williams marked its 52nd consecutive year of dividend payments without a cut, while ONEOK reduced its payout from $0.61 to $0.33 in mid-2012.

ONEOK yields roughly 4.5%, significantly higher than Williams' 2.8%. However, the former's coverage ratio is comfortable, with management's raised 2026 outlook of a $5.68 diluted EPS midpoint keeping the ratio at a safe level.

Williams has a deeper backlog and faster contracted EBITDA growth target, reaching 11% plus compound annual growth through 2030. ONEOK guides to mid- to high-single-digit adjusted EBITDA growth over the next five to seven years, but its sensitivity to producer activity is showing up in real time.

For retirement-focused investors, Williams offers a more durable pipeline income profile due to its uninterrupted payment history and contracted backlog. For those seeking maximum current cash, ONEOK may be the better choice despite its commodity-cycle risk.