Why ONEOK Outshines TC Energy for Higher Yield and Dividend Growth in 2026

In the evolving landscape of North American natural gas infrastructure equities, two titans-ONEOK (OKE) and TC Energy (TRP)-have long been staples for income-focused investors. While both companies boast robust operational frameworks and disciplined capital strategies, the calculus for 2026 favors ONEOK for its superior yield, scalable project pipeline, and stronger dividend growth trajectory. This analysis dissects why investors should consider reallocating from TC Energy to ONEOK, even as the latter's yield appears modestly lower at first glance.

TC Energy's Strengths: A Disciplined Growth Flywheel

TC Energy, a Canadian energy infrastructure giant, has built a reputation for reliability. Its 6.2% dividend yield, based on an annualized $3.40 payout, is attractive for income seekers. The company's 5-7% annualized dividend growth guidance from 2025 to 2028 reflects a disciplined capital allocation strategy, underpinned by $700 million CAD in sanctioned projects, including natural gas pipelines targeting power generation and data center demand as highlighted in Q3 earnings. These projects, backed by long-term contracts, ensure stable cash flows and reinforce TC Energy's growth flywheel.

However, TC Energy's yield, while solid, lags behind the sector average. The Alerian MLP Infrastructure Index currently yields 8.0%, illustrating the income potential of midstream equities. This context sets the stage for ONEOK's case: a company with a comparable yield and a stronger foundation for growth.

ONEOK's Edge: Yield, Margin, and Scalable Projects

ONEOK's current dividend yield of 5.9% to 6.0% based on a $4.12 annualized payout may trail TC Energy's by 0.3 percentage points. Yet this apparent gap is misleading. ONEOK's 21.2% operating margin over the past three years-among the highest in the sector-supports a fee-based business model that insulates it from commodity price volatility. This margin, combined with $500 million in acquisition synergies year-to-date, positions ONEOK to sustain-and likely exceed-its dividend growth.

The company's 2026 project pipeline is a critical differentiator. The Bighorn plant and Eiger Express pipeline, expected to enhance capacity and revenue, are already in development. These projects, coupled with strategic expansions in the Permian Basin and Denver, create a scalable infrastructure that aligns with long-term energy demand. ONEOK's Q3 2025 results, which exceeded expectations with a 10% year-over-year net income increase, further validate its operational strength.

Dividend Growth: ONEOK's Hidden Momentum

While TC Energy provides explicit 5-7% dividend growth guidance, ONEOK's trajectory is less transparent. The company has removed specific 2026 earnings guidance, citing commodity price uncertainties. However, third-party analysts and operational metrics suggest ONEOK's growth could outpace expectations. A 75.74% payout ratio indicates ample room to increase dividends as earnings expand as reported by market data. Moreover, ONEOK's share repurchase program-over 600,000 shares retired in Q3 2025-and debt reduction efforts $500 million in senior notes retired demonstrate a commitment to shareholder value.

ONEOK's 2025 EPS guidance of $4.97–$5.77, with a consensus estimate of $5.07, also hints at a stable base for future increases as per financial filings. By contrast, TC Energy's growth, though reliable, is tethered to a narrower margin of 5-7% without the same level of project-driven scalability.

Conclusion: Reallocating for 2026

For investors prioritizing yield and growth in 2026, ONEOK's combination of a fee-based model, robust operating margin, and high-impact projects makes it a compelling choice. While TC Energy's disciplined approach is admirable, its yield and growth guidance are outpaced by ONEOK's operational momentum and strategic flexibility. The latter's ability to navigate commodity volatility and capitalize on infrastructure tailwinds-such as Permian expansion and data center demand-positions it to deliver superior returns in the coming year.

In an era where energy infrastructure equities are increasingly scrutinized for resilience and scalability, ONEOK emerges not just as a peer to TC Energy, but as a superior bet for those seeking to optimize yield and growth in 2026.