A higher earnings yield isn't always good. A 10% EY could be poor compared to a 5% EY. If the 5% yielder is able to predictably reinvest capital at high rates of return, our initial yield will improve. This is why Buffett purchased Coca-Cola at an apparently low 6.89% EY in 1988.
You're absolutely right. That's no excuse to shut out such opportunities though! Good to stay open, but only for what's at least fair. A 2.5% EY is a massive stretch. Forget about it!