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."

Manhattan Bridge Capital

Dividend Yield: 8.20%

Manhattan Bridge Capital

(NASDAQ:

LOAN

) shares currently have a dividend yield of 8.20%.

Manhattan Bridge Capital, Inc., a real estate finance company, originates, services, and manages a portfolio of first mortgage loans in the United States. The company has a P/E ratio of 13.00.

The average volume for Manhattan Bridge Capital has been 20,300 shares per day over the past 30 days. Manhattan Bridge Capital has a market cap of $30.1 million and is part of the financial services industry. Shares are down 2.5% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates

Manhattan Bridge Capital

as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, growth in earnings per share, attractive valuation levels and expanding profit margins. 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 15.2%. Since the same quarter one year prior, revenues rose by 34.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. 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.
  • MANHATTAN BRIDGE CAPITAL INC has improved earnings per share by 12.5% 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. We feel that this trend should continue. During the past fiscal year, MANHATTAN BRIDGE CAPITAL INC increased its bottom line by earning $0.29 versus $0.15 in the prior year. This year, the market expects an improvement in earnings ($0.34 versus $0.29).
  • The gross profit margin for MANHATTAN BRIDGE CAPITAL INC is currently very high, coming in at 77.79%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 61.97% significantly outperformed against the industry average.

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Delek Logistics Partners

Dividend Yield: 8.50%

Delek Logistics Partners

(NYSE:

DKL

) shares currently have a dividend yield of 8.50%.

Delek Logistics Partners, LP owns and operates logistics and marketing assets for crude oil, and intermediate and refined products in the United States. It operates through two segments, Pipelines and Transportation, and Wholesale Marketing and Terminalling. The company has a P/E ratio of 10.02.

The average volume for Delek Logistics Partners has been 55,000 shares per day over the past 30 days. Delek Logistics Partners has a market cap of $340.0 million and is part of the energy industry. Shares are down 20.6% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates

Delek Logistics Partners

as a

buy

. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, good cash flow from operations, growth in earnings per share and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

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 Oil, Gas & Consumable Fuels industry. The net income increased by 25.4% when compared to the same quarter one year prior, rising from $14.84 million to $18.60 million.
  • Net operating cash flow has remained constant at $20.20 million with no significant change when compared to the same quarter last year. Along with maintaining stable cash flow from operations, the firm exceeded the industry average cash flow growth rate of -26.87%.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 36.8%. Since the same quarter one year prior, revenues fell by 27.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • DELEK LOGISTICS PARTNERS LP has improved earnings per share by 26.7% 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, DELEK LOGISTICS PARTNERS LP increased its bottom line by earning $2.87 versus $1.96 in the prior year. For the next year, the market is expecting a contraction of 6.6% in earnings ($2.68 versus $2.87).
  • The gross profit margin for DELEK LOGISTICS PARTNERS LP is rather low; currently it is at 17.66%. Regardless of DKL's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, DKL's net profit margin of 11.26% significantly outperformed against the industry.

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China Distance Education Holdings

Dividend Yield: 7.50%

China Distance Education Holdings

(NYSE:

DL

) shares currently have a dividend yield of 7.50%.

China Distance Education Holdings Limited provides online and offline education services, and sells related products in the People's Republic of China. The company has a P/E ratio of 18.15.

The average volume for China Distance Education Holdings has been 109,900 shares per day over the past 30 days. China Distance Education Holdings has a market cap of $426.5 million and is part of the diversified services industry. Shares are down 18.6% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates

China Distance Education Holdings

as a

buy

. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Diversified Consumer Services industry average. The net income increased by 0.7% when compared to the same quarter one year prior, going from $13.42 million to $13.52 million.
  • DL's revenue growth trails the industry average of 12.8%. Since the same quarter one year prior, revenues slightly increased by 0.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • DL's debt-to-equity ratio is very low at 0.18 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, DL has a quick ratio of 1.74, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 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 Diversified Consumer Services industry and the overall market, CHINA DISTANCE EDUCATION-ADR's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • CHINA DISTANCE EDUCATION-ADR reported flat earnings per share in the most recent quarter. 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, CHINA DISTANCE EDUCATION-ADR increased its bottom line by earning $0.69 versus $0.67 in the prior year. This year, the market expects an improvement in earnings ($0.88 versus $0.69).

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