At first glance this seems odd.
Most of the time when you’re looking for very high yield stocks, you’ll end up finding companies which are either small, young or highly cyclical.
Sometimes though you’ll find the exact opposite, and that’s what we have today with Centrica.
So why would a company with such an entrenched market position, operating in such a defensive market, have such a high yield?
The primary reason is regulation, and lots of it:
Centrica’s 8% dividend yield means it’s priced for energy Armageddon