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Stocks Under $10 with 50-100% upside potential - 14 days FREE!
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Best Of The Buy-Rated Dividend Stocks: Top 3 Companies: UBSI, PPL, VIV

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

TheStreet Ratings' stock model projects a stock's total return potential over a 12-month period including both price appreciation and dividends. Our Buy, Hold or Sell ratings designate how we expect these stocks to perform against a general benchmark of the equities market and interest rates.

While plenty of high-yield opportunities exist, investors must always consider the safety of their dividend and the total return potential of their investment. It is not uncommon for a struggling company to suspend high-yielding dividends which could subsequently result in precipitous share price declines.

TheStreet Ratings' stock rating model views dividends favorably, but not so much that other factors are disregarded. Our model gauges the relationship between risk and reward in several ways, including: the pricing drawdown as compared to potential profit volatility, i.e. how much one is willing to risk in order to earn profits?; the level of acceptable volatility for highly performing stocks; the current valuation as compared to projected earnings growth; and the financial strength of the underlying company as compared to its stock's valuation as compared to its stock's performance.

These and many more derived observations are then combined, ranked, weighted, and scenario-tested to create a more complete analysis. The result is a systematic and disciplined method of selecting stocks. As always, stock ratings should not be treated as gospel — rather, use them as a starting point for your own research.

The following pages contain our analysis of 3 stocks with substantial yields, that ultimately, we have rated "Buy."

United Bankshares

Dividend Yield: 4.20%

United Bankshares (NASDAQ:UBSI) shares currently have a dividend yield of 4.20%.

United Bankshares, Inc., through its subsidiaries, provides commercial and retail banking services and products in the United States. The company has a P/E ratio of 18.24.

The average volume for United Bankshares has been 426,500 shares per day over the past 30 days. United Bankshares has a market cap of $2.1 billion and is part of the banking industry. Shares are down 3.4% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates United Bankshares as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • The gross profit margin for UNITED BANKSHARES INC/WV is currently very high, coming in at 85.73%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 21.92% significantly outperformed against the industry average.
  • UNITED BANKSHARES INC/WV's earnings per share declined by 7.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, UNITED BANKSHARES INC/WV increased its bottom line by earning $1.70 versus $1.64 in the prior year. This year, the market expects an improvement in earnings ($1.87 versus $1.70).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 12.8%. Since the same quarter one year prior, revenues slightly dropped by 7.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
  • Net operating cash flow has decreased to $35.45 million or 11.88% when compared to the same quarter last year. Despite a decrease in cash flow of 11.88%, UNITED BANKSHARES INC/WV is still significantly exceeding the industry average of -85.68%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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