Shares of midstream company Tallgrass Energy (NYSE:TGE) have declined about 5% this year. Because of the lower share price, the company's dividend now yields an eye-catching 9.2% when factoring in the 1.9% increase from the first quarter. That certainly makes it seem attractive to income-seeking investors.
However, with that higher yield comes an elevated risk level. That's why investors might want to consider putting Tallgrass on their watchlist for now and see if it can address a few issues before they add it to their portfolio.