Why I Want to Buy This Beaten-Down 6%-Yielding Dividend Stock in My Retirement Account

Core Viewpoint - The stock market rally has made it challenging to find attractively priced stocks, with the S&P 500 up 18% over the past year and nearly 80% over the last three years, leading to a high valuation of over 20 times forward earnings [1] Company Overview - ONEOK (NYSE: OKE) has seen its shares decline over 40% from their 52-week high, resulting in a dividend yield of around 6%, presenting a potential investment opportunity [2] - Despite the stock price drop, ONEOK generated nearly $3.8 billion in adjusted EBITDA in the first half of the year, reflecting a 22.5% increase year-over-year, driven by acquisitions [4] Growth Performance - ONEOK has achieved 11 consecutive years of adjusted EBITDA growth at a compound annual rate of 16%, with organic projects contributing to growth initially and acquisitions, including the 2023 deal for Magellan, driving more recent growth [5] - The stock price had previously increased over 80% due to acquisition-driven growth but has since retraced most of those gains, now showing less than 20% growth over the past three years [6] Future Growth Catalysts - The market currently undervalues ONEOK, pricing it as if future growth will be minimal, despite having two visible catalysts for earnings growth and additional upside potential [7] - The company is expected to continue growing its high-yielding dividend, supported by its ongoing growth initiatives [8]