A high dividend yield usually means one of two things. Either investors don't believe the company can sustain the payout, or the business has another factor creating some overhang. These issues will weigh down a company's valuation, pushing up its dividend yield.

Kinetik Holdings (NYSE: KNTK), Plains All American Pipeline (NASDAQ: PAA), and Western Midstream (NYSE: WES) all currently offer big-time payouts. Their high yields are due to a non-financial factor weighing them down (ownership quirks in these cases). That's causing investors to underrate and undervalue these companies.  

Kinetik Holdings came into existence in 2022 following the merger of Altus Midstream (backed by oil and gas producer APA Corporation) and EagleClaw Midstream (backed by private equity giant Blackstone and I Squared Capital). The deal created a pure-play midstream company focused on the Permian Basin. 

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Source Fool.com