This is a tough one. The yield itself looks relatively safe, making up only around 55% of free cash flow generation.
This is a company we used to cover and one I actually used to own. The thesis changed materially. It struggled with capital deployment and simply could not turn things around.
Why are acquisitions important for this one? Well, organic growth is actually shrinking. So, if they cannot find any deals to turn this around and start growing, I expect the stock will stay stuck in what I view is value trap territory.
Valuations are very cheap. We're talking 10x FCF, 14x earnings, and 6x EV/EBITDA. At this point in time, however, they're cheap for a reason.
That said, you did say you were looking at the company for income. I do see an added element there, as the high yield plus 2-3% appreciation from the company a year is enough to give you a market-level return .The risk here is that it still struggles to keep its head above water and in a year or so we're at $15 instead of $19.
Risk reward here is reasonable. I wouldn't blame you for buying this especially with an income focus.