One income is good, but a second income brings with it a broader range of options in life. A new house perhaps, more exotic holidays, or an earlier and more comfortable retirement. The best way I have found of generating a high second income is by investing in shares that pay me dividends regularly. I recently added HSBC (LSE: HSBA) to my high-yield portfolio. It currently generates a dividend payout of 7.7%. Aside from this, it also has a strong core business – essential for sustaining high dividends over time. In 2023, profit before tax rose by $13.3bn (£10.7bn) to a record $30.3bn. One risk is that this falls, as declining interest rates reduce the bank’s profit margins. Another risk is a new global financial crisis. However, consensus analyst expectations are that its revenue will grow 3.5% a year to the end of 2026. Forecasts are that return on equity will be 11.7% by that time. Another positive factor for me is that it looks around 56% undervalued against its competitor banks on a discounted cash flow basis. This reduces the chance of big share price falls wiping out my dividend gains. A fair value would be around £14.48, compared to the...