3 Hold-Rated Dividend Stocks: AMTG, STON, ANH
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 "Hold."
Dividend Yield: 11.40%
(NYSE:
) shares currently have a dividend yield of 11.40%.
Apollo Residential Mortgage, Inc. primarily invests in residential mortgage assets in the United States. The company has a P/E ratio of 6.19.
The average volume for Apollo Residential Mortgage has been 231,400 shares per day over the past 30 days. Apollo Residential Mortgage has a market cap of $506.7 million and is part of the real estate industry. Shares are up 0.5% year-to-date as of the close of trading on Friday.
TheStreet Ratings rates
Apollo Residential Mortgage
as a
. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.
Highlights from the ratings report include:
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Real Estate Investment Trusts (REITs) industry average. The net income increased by 55.8% when compared to the same quarter one year prior, rising from $8.53 million to $13.29 million.
- The gross profit margin for APOLLO RESIDENTIAL MTG INC is currently very high, coming in at 85.26%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 33.75% trails the industry average.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, APOLLO RESIDENTIAL MTG INC's return on equity is below that of both the industry average and the S&P 500.
- AMTG has underperformed the S&P 500 Index, declining 6.02% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- You can view the full Apollo Residential Mortgage Ratings Report.
Dividend Yield: 9.00%
(NYSE:
) shares currently have a dividend yield of 9.00%.
StoneMor Partners L.P., together with its subsidiaries, owns and operates cemeteries in the United States. It operates through Cemetery Operations-Southeast, Cemetery Operations-Northeast, Cemetery Operations-West, and Funeral Homes segments.
The average volume for Stonemor Partners has been 161,900 shares per day over the past 30 days. Stonemor Partners has a market cap of $813.1 million and is part of the diversified services industry. Shares are up 9.8% year-to-date as of the close of trading on Friday.
TheStreet Ratings rates
Stonemor Partners
as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and generally higher debt management risk.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 8.3%. Since the same quarter one year prior, revenues rose by 27.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The gross profit margin for STONEMOR PARTNERS LP is rather high; currently it is at 51.25%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -4.18% is in-line with the industry average.
- 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. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Diversified Consumer Services industry. The net income has significantly decreased by 120.2% when compared to the same quarter one year ago, falling from -$1.48 million to -$3.27 million.
- Net operating cash flow has decreased to $16.49 million or 19.23% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full Stonemor Partners Ratings Report.
Dividend Yield: 10.80%
(NYSE:
) shares currently have a dividend yield of 10.80%.
Anworth Mortgage Asset Corporation operates as a real estate investment trust in the United States. The company primarily invests in the United States agency mortgage-backed securities, which are securities representing obligations guaranteed by the U.S. The company has a P/E ratio of 28.83.
The average volume for Anworth Mortgage Asset has been 853,800 shares per day over the past 30 days. Anworth Mortgage Asset has a market cap of $587.9 million and is part of the real estate industry. Shares are down 0.4% year-to-date as of the close of trading on Friday.
TheStreet Ratings rates
Anworth Mortgage Asset
as a
. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share.
Highlights from the ratings report include:
- The gross profit margin for ANWORTH MTG ASSET CORP is currently very high, coming in at 89.29%. Regardless of ANH's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ANH's net profit margin of -40.61% significantly underperformed when compared to the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income has significantly decreased by 228.8% when compared to the same quarter one year ago, falling from $11.09 million to -$14.29 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market on the basis of return on equity, ANWORTH MTG ASSET CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
- You can view the full Anworth Mortgage Asset Ratings Report.
Other helpful dividend tools from TheStreet:
- Our dividend calendar.
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