3 Buy-Rated Dividend Stocks Leading The Pack: BGCP, RHP, RYAAY - TheStreet

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."

BGC Partners

Dividend Yield: 6.20%

BGC Partners

(NASDAQ:

BGCP

) shares currently have a dividend yield of 6.20%.

BGC Partners, Inc. operates as a brokerage company in the United Kingdom, the United States, and internationally. It operates in two segments, Financial Services and Real Estate Services. The company has a P/E ratio of 53.41.

The average volume for BGC Partners has been 1,259,200 shares per day over the past 30 days. BGC Partners has a market cap of $2.0 billion and is part of the financial services industry. Shares are up 0.7% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

BGC Partners

as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, good cash flow from operations, impressive record of earnings per share growth and solid stock price performance. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • BGCP's very impressive revenue growth greatly exceeded the industry average of 5.7%. Since the same quarter one year prior, revenues leaped by 57.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 432.1% when compared to the same quarter one year prior, rising from $7.21 million to $38.37 million.
  • Net operating cash flow has significantly increased by 157.89% to $133.25 million when compared to the same quarter last year. Despite an increase in cash flow of 157.89%, BGC PARTNERS INC is still growing at a significantly lower rate than the industry average of 272.40%.
  • BGC PARTNERS INC reported significant earnings per share improvement 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, BGC PARTNERS INC reported lower earnings of $0.02 versus $0.35 in the prior year. This year, the market expects an improvement in earnings ($0.74 versus $0.02).
  • After a year of stock price fluctuations, the net result is that BGCP's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. 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.

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Ryman Hospitality Properties

Dividend Yield: 5.20%

Ryman Hospitality Properties

(NYSE:

RHP

) shares currently have a dividend yield of 5.20%.

Ryman Hospitality Properties, Inc. owns and operates hotels in the United States. The company has a P/E ratio of 20.73.

The average volume for Ryman Hospitality Properties has been 260,600 shares per day over the past 30 days. Ryman Hospitality Properties has a market cap of $2.8 billion and is part of the real estate industry. Shares are up 2.3% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

Ryman Hospitality Properties

as a

buy

. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, notable return on equity, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 76.4% when compared to the same quarter one year prior, rising from $15.13 million to $26.69 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 6.1%. Since the same quarter one year prior, revenues slightly increased by 2.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 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. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, RYMAN HOSPITALITY PPTYS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • Net operating cash flow has increased to $75.36 million or 15.04% when compared to the same quarter last year. In addition, RYMAN HOSPITALITY PPTYS INC has also modestly surpassed the industry average cash flow growth rate of 9.44%.

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Ryanair Holdings

Dividend Yield: 4.10%

Ryanair Holdings

(NASDAQ:

RYAAY

) shares currently have a dividend yield of 4.10%.

Ryanair Holdings plc, together with its subsidiaries, provides scheduled-passenger airline services in Ireland, the United Kingdom, continental Europe, and Morocco. The company has a P/E ratio of 30.79.

The average volume for Ryanair Holdings has been 425,000 shares per day over the past 30 days. Ryanair Holdings has a market cap of $21.2 billion and is part of the transportation industry. Shares are up 10.1% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

Ryanair Holdings

as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 5.6%. Since the same quarter one year prior, revenues rose by 10.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.93, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, RYAAY has a quick ratio of 1.86, which demonstrates the ability of the company to cover short-term liquidity needs.
  • RYANAIR HOLDINGS PLC 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 two years. We feel that this trend should continue. During the past fiscal year, RYANAIR HOLDINGS PLC increased its bottom line by earning $3.44 versus $2.56 in the prior year. This year, the market expects an improvement in earnings ($5.11 versus $3.44).
  • 48.37% is the gross profit margin for RYANAIR HOLDINGS PLC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 48.59% significantly outperformed against the industry average.
  • Net operating cash flow has significantly increased by 128.01% to $307.51 million when compared to the same quarter last year. Despite an increase in cash flow, RYANAIR HOLDINGS PLC's average is still marginally south of the industry average growth rate of 136.37%.

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