What To Hold: 3 Hold-Rated Dividend Stocks MMLP, OZM, NYMT
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
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: 9.40%
(NASDAQ:
) shares currently have a dividend yield of 9.40%.
Martin Midstream Partners L.P. collects, transports, stores, and markets petroleum products and by-products in the United States Gulf Coast region.
The average volume for Martin Midstream Partners has been 175,900 shares per day over the past 30 days. Martin Midstream Partners has a market cap of $1.2 billion and is part of the energy industry. Shares are up 28.7% year-to-date as of the close of trading on Monday.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
TheStreet Ratings rates
Martin Midstream Partners
as a
. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, increase in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, a generally disappointing performance in the stock itself and poor profit margins.
Highlights from the ratings report include:
- MARTIN MIDSTREAM PARTNERS LP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, MARTIN MIDSTREAM PARTNERS LP continued to lose money by earning -$0.15 versus -$0.49 in the prior year. This year, the market expects an improvement in earnings ($1.01 versus -$0.15).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 111.1% when compared to the same quarter one year prior, rising from -$39.26 million to $4.37 million.
- MMLP, with its decline in revenue, underperformed when compared the industry average of 19.6%. Since the same quarter one year prior, revenues fell by 30.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- MMLP has underperformed the S&P 500 Index, declining 24.51% 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.
- Currently the debt-to-equity ratio of 1.86 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with the unfavorable debt-to-equity ratio, MMLP maintains a poor quick ratio of 0.93, which illustrates the inability to avoid short-term cash problems.
- You can view the full Martin Midstream Partners Ratings Report.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
Och-Ziff Capital Management Group
Dividend Yield: 15.10%
Och-Ziff Capital Management Group
(NYSE:
) shares currently have a dividend yield of 15.10%.
Och-Ziff Capital Management Group LLC is a publicly owned hedge fund sponsor. The firm provides investment advisory services for its clients. It invests in equity markets across the world. The firm makes its investments in alternative markets across the world. The company has a P/E ratio of 15.60.
The average volume for Och-Ziff Capital Management Group has been 588,700 shares per day over the past 30 days. Och-Ziff Capital Management Group has a market cap of $2.2 billion and is part of the financial services industry. Shares are up 7% year-to-date as of the close of trading on Monday.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
TheStreet Ratings rates
Och-Ziff Capital Management Group
as a
. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- 45.69% is the gross profit margin for OCH-ZIFF CAPITAL MGMT LLC which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 12.31% trails the industry average.
- OZM, with its decline in revenue, underperformed when compared the industry average of 13.2%. Since the same quarter one year prior, revenues fell by 37.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- OCH-ZIFF CAPITAL MGMT LLC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, OCH-ZIFF CAPITAL MGMT LLC reported lower earnings of $0.75 versus $1.50 in the prior year. This year, the market expects an improvement in earnings ($1.47 versus $0.75).
- 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 Capital Markets industry. The net income has significantly decreased by 57.5% when compared to the same quarter one year ago, falling from $199.06 million to $84.68 million.
- Net operating cash flow has decreased to $134.59 million or 27.67% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full Och-Ziff Capital Management Group Ratings Report.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
Dividend Yield: 13.30%
(NASDAQ:
) shares currently have a dividend yield of 13.30%.
New York Mortgage Trust, Inc., a real estate investment trust (REIT), is engaged in acquiring, investing in, financing, and managing mortgage-related and financial assets in the United States. The company has a P/E ratio of 5.48.
The average volume for New York Mortgage has been 1,142,900 shares per day over the past 30 days. New York Mortgage has a market cap of $853.9 million and is part of the real estate industry. Shares are up 4.5% year-to-date as of the close of trading on Monday.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
TheStreet Ratings rates
New York Mortgage
as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and attractive valuation levels. However, as a counter to these strengths, we find that the stock has experienced relatively poor performance when compared with the S&P 500 during the past year.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 10.1%. Since the same quarter one year prior, revenues rose by 34.0%. 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, NEW YORK MORTGAGE TRUST INC's return on equity exceeds that of both the industry average and the S&P 500.
- 36.12% is the gross profit margin for NEW YORK MORTGAGE TRUST INC which we consider to be strong. 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 31.86% trails the industry average.
- NEW YORK MORTGAGE TRUST INC has improved earnings per share by 23.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, NEW YORK MORTGAGE TRUST INC increased its bottom line by earning $1.47 versus $1.11 in the prior year. For the next year, the market is expecting a contraction of 27.6% in earnings ($1.07 versus $1.47).
- In its most recent trading session, NYMT has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. 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.
- You can view the full New York Mortgage Ratings Report.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
Other helpful dividend tools from TheStreet:
- Our dividend calendar.
null