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 "Buy."

H&E Equipment Services

Dividend Yield: 4.30%

H&E Equipment Services

(NASDAQ:

HEES

) shares currently have a dividend yield of 4.30%.

H&E Equipment Services, Inc. operates as an integrated equipment services company. The company rents, sells, and provides parts and service support for hi-lift or aerial work platform equipment, crane, earthmoving equipment, and industrial lift truck categories. The company has a P/E ratio of 15.57.

The average volume for H&E Equipment Services has been 625,200 shares per day over the past 30 days. H&E Equipment Services has a market cap of $828.3 million and is part of the diversified services industry. Shares are down 4.2% year-to-date as of the close of trading on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates

H&E Equipment Services

as a

buy

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

Highlights from the ratings report include:

  • H&E EQUIPMENT SERVICES INC has improved earnings per share by 7.5% 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, H&E EQUIPMENT SERVICES INC increased its bottom line by earning $1.26 versus $0.83 in the prior year. This year, the market expects an improvement in earnings ($1.54 versus $1.26).
  • Despite its growing revenue, the company underperformed as compared with the industry average of 7.0%. Since the same quarter one year prior, revenues slightly increased by 1.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Net operating cash flow has significantly increased by 228.12% to $68.77 million when compared to the same quarter last year. In addition, H&E EQUIPMENT SERVICES INC has also vastly surpassed the industry average cash flow growth rate of 21.64%.
  • 48.69% is the gross profit margin for H&E EQUIPMENT SERVICES 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 5.56% trails the industry average.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Trading Companies & Distributors industry and the overall market, H&E EQUIPMENT SERVICES INC's return on equity significantly exceeds that of both the industry average and the S&P 500.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

EnLink Midstream Partners

Dividend Yield: 5.50%

EnLink Midstream Partners

(NYSE:

ENLK

) shares currently have a dividend yield of 5.50%.

EnLink Midstream Partners, LP, through its subsidiary, EnLink Midstream Operating, LP, provides midstream energy services. It engages in the gathering, transmission, processing, fractionation, and marketing natural gas, natural gas liquids (NGLs), crude oil, and condensate. The company has a P/E ratio of 45.92.

The average volume for EnLink Midstream Partners has been 553,700 shares per day over the past 30 days. EnLink Midstream Partners has a market cap of $6.7 billion and is part of the energy industry. Shares are down 7.7% year-to-date as of the close of trading on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates

EnLink Midstream Partners

as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • ENLK's very impressive revenue growth greatly exceeded the industry average of 20.1%. Since the same quarter one year prior, revenues leaped by 73.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • ENLINK 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 two years. We feel that this trend should continue. During the past fiscal year, ENLINK MIDSTREAM PARTNERS LP turned its bottom line around by earning $0.60 versus -$0.38 in the prior year. This year, the market expects an improvement in earnings ($0.62 versus $0.60).
  • 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 391.0% when compared to the same quarter one year prior, rising from -$17.73 million to $51.60 million.
  • The gross profit margin for ENLINK MIDSTREAM PARTNERS LP is rather low; currently it is at 21.70%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, ENLK's net profit margin of 5.18% compares favorably to the industry average.
  • ENLK has underperformed the S&P 500 Index, declining 7.02% from its price level of one year ago. Despite the stock's decline during the last year, it is still somewhat more expensive (in proportion to its earnings over the last year) than most other stocks in its industry. We feel, however, that other strengths this company displays offset this slight negative.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Plum Creek Timber

Dividend Yield: 4.10%

Plum Creek Timber

(NYSE:

PCL

) shares currently have a dividend yield of 4.10%.

Plum Creek Timber Company, Inc. is a publicly owned real estate investment trust (REIT). The trust owns and manages timberlands in the United States. Its products include lumber products, plywood, medium density fiberboard, and related by-products, such as wood chips. The company has a P/E ratio of 35.75.

The average volume for Plum Creek Timber has been 1,000,500 shares per day over the past 30 days. Plum Creek Timber has a market cap of $7.6 billion and is part of the materials & construction industry. Shares are up 1.3% year-to-date as of the close of trading on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates

Plum Creek Timber

as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, notable return on equity 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 0.3%. Since the same quarter one year prior, revenues rose by 29.3%. 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 Real Estate Investment Trusts (REITs) industry. The net income increased by 70.0% when compared to the same quarter one year prior, rising from $40.00 million to $68.00 million.
  • Net operating cash flow has significantly increased by 60.71% to $135.00 million when compared to the same quarter last year. In addition, PLUM CREEK TIMBER CO INC has also vastly surpassed the industry average cash flow growth rate of -71.43%.
  • 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 on the basis of return on equity, PLUM CREEK TIMBER CO INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • 36.45% is the gross profit margin for PLUM CREEK TIMBER CO INC which we consider to be strong. Regardless of PCL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PCL's net profit margin of 15.88% is significantly lower than the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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