Don't Miss Out: Top 3 Yielding Buy-Rated Stocks: TUP, GEO, SEP
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."
Dividend Yield: 4.70%
(NYSE:
) shares currently have a dividend yield of 4.70%.
Tupperware Brands Corporation operates as a direct-to-consumer marketer of various products across a range of brands and categories worldwide. The company has a P/E ratio of 14.55.
The average volume for Tupperware Brands has been 601,000 shares per day over the past 30 days. Tupperware Brands has a market cap of $2.9 billion and is part of the consumer non-durables industry. Shares are up 12.4% year-to-date as of the close of trading on Wednesday.
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TheStreet Ratings rates
Tupperware Brands
as a
. The company's strengths can be seen in multiple areas, such as its notable return on equity, growth in earnings per share, good cash flow from operations, expanding profit margins and increase in net income. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Household Durables industry and the overall market, TUPPERWARE BRANDS CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has increased to -$7.50 million or 36.44% when compared to the same quarter last year. Despite an increase in cash flow, TUPPERWARE BRANDS CORP's cash flow growth rate is still lower than the industry average growth rate of 56.60%.
- TUPPERWARE BRANDS CORP has improved earnings per share by 45.8% 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, TUPPERWARE BRANDS CORP reported lower earnings of $3.69 versus $4.21 in the prior year. This year, the market expects an improvement in earnings ($4.30 versus $3.69).
- The gross profit margin for TUPPERWARE BRANDS CORP is currently very high, coming in at 71.30%. Regardless of TUP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TUP's net profit margin of 8.25% compares favorably to the industry average.
- TUP, with its decline in revenue, underperformed when compared the industry average of 3.7%. Since the same quarter one year prior, revenues slightly dropped by 9.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full Tupperware Brands Ratings Report.
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Dividend Yield: 7.50%
(NYSE:
) shares currently have a dividend yield of 7.50%.
The GEO Group, Inc. provides government-outsourced services specializing in the management of correctional, detention, and re-entry facilities, and the provision of community based services and youth services in the United States, Australia, South Africa, the United Kingdom, and Canada. The company has a P/E ratio of 17.80.
The average volume for GEO Group has been 453,600 shares per day over the past 30 days. GEO Group has a market cap of $2.6 billion and is part of the real estate industry. Shares are up 19.9% year-to-date as of the close of trading on Wednesday.
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TheStreet Ratings rates
GEO Group
as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, growth in earnings per share and increase in net income. We feel its strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- GEO's revenue growth has slightly outpaced the industry average of 11.9%. Since the same quarter one year prior, revenues rose by 19.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, GEO GROUP INC's return on equity exceeds that of both the industry average and the S&P 500.
- GEO GROUP INC has improved earnings per share by 12.8% 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, GEO GROUP INC reported lower earnings of $1.88 versus $1.99 in the prior year. This year, the market expects an improvement in earnings ($1.98 versus $1.88).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Real Estate Investment Trusts (REITs) industry average. The net income increased by 12.4% when compared to the same quarter one year prior, going from $28.78 million to $32.35 million.
- You can view the full GEO Group Ratings Report.
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Dividend Yield: 5.40%
(NYSE:
) shares currently have a dividend yield of 5.40%.
Spectra Energy Partners, LP operates as an investment arm of Spectra Energy Corp. The company has a P/E ratio of 14.53.
The average volume for Spectra Energy Partners has been 504,000 shares per day over the past 30 days. Spectra Energy Partners has a market cap of $13.8 billion and is part of the energy industry. Shares are up 0.9% year-to-date as of the close of trading on Wednesday.
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TheStreet Ratings rates
Spectra Energy Partners
as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 23.9%. Since the same quarter one year prior, revenues slightly increased by 3.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income increased by 1.7% when compared to the same quarter one year prior, going from $293.00 million to $298.00 million.
- Net operating cash flow has slightly increased to $297.00 million or 5.69% when compared to the same quarter last year. In addition, SPECTRA ENERGY PARTNERS LP has also vastly surpassed the industry average cash flow growth rate of -49.64%.
- The gross profit margin for SPECTRA ENERGY PARTNERS LP is rather high; currently it is at 64.26%. Regardless of SEP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SEP's net profit margin of 47.75% significantly outperformed against the industry.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, SPECTRA ENERGY PARTNERS LP's return on equity has significantly outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- You can view the full Spectra Energy Partners Ratings Report.
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Other helpful dividend tools from TheStreet:
- Our dividend calendar.