By: Dividend Sensei
High-yield investing is powerful if you focus on maximum SAFE yield, which requires prioritizing safety and quality first, and prudent valuation and sound risk management always.
This blue-chip has almost quadrupled off the pandemic lows, when it was 61% undervalued, at 2.4X cash flow, and offered a safe 25% yield.
But even after delivering 80% annual returns for two years, this blue-chip trades at a very reasonable 7.1X cash flow, an anti-bubble blue-chip valuation.
This is the safest 8.5% yield on Wall Street, backed up by a low payout ratio, strong balance sheet, and recession-resistant utility-like business model.