My preference is to buy well-run companies when they are offering historically high dividend yields. It's inherently a value approach that takes advantage of Mr. Market's frequent emotional whims.

Right now, Bank of America (NYSE: BAC) is on my radar screen after the bank failures in early 2023. While I see the opportunity the mini-banking crisis earlier this year created, I'm happy to stick with my investment in Toronto-Dominion Bank (NYSE: TD).

Whenever I see a company that I believe is well run but has a historically high yield, the first question I ask is, "Why?" Sometimes a stock is cheap for a reason because there are major problems that won't be easily solved, and the stock is best avoided.

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Source Fool.com