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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."

Alliance Resource Partners

Dividend Yield: 12.60%

Alliance Resource Partners

(NASDAQ:

ARLP

) shares currently have a dividend yield of 12.60%.

Alliance Resource Partners, L.P. produces and markets coal primarily to utilities and industrial users in the United States. It operates through the Illinois Basin, Appalachia, White Oak, and Other and Corporate segments. The company has a P/E ratio of 6.18.

The average volume for Alliance Resource Partners has been 280,800 shares per day over the past 30 days. Alliance Resource Partners has a market cap of $1.6 billion and is part of the metals & mining industry. Shares are down 50% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates

Alliance Resource Partners

as a

hold

. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, generally higher debt management risk and weak operating cash flow.

Highlights from the ratings report include:

  • 37.04% is the gross profit margin for ALLIANCE RESOURCE PTNRS -LP which we consider to be strong. Regardless of ARLP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ARLP's net profit margin of 14.71% significantly outperformed against the industry.
  • Despite the weak revenue results, ARLP has significantly outperformed against the industry average of 33.1%. Since the same quarter one year prior, revenues slightly dropped by 0.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • ARLP's debt-to-equity ratio of 0.92 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that ARLP's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.59 is low and demonstrates weak liquidity.
  • Net operating cash flow has declined marginally to $190.02 million or 8.20% when compared to the same quarter last year. Despite a decrease in cash flow ALLIANCE RESOURCE PTNRS -LP is still fairing well by exceeding its industry average cash flow growth rate of -19.63%.

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North European Oil Royalty

Dividend Yield: 14.50%

North European Oil Royalty

(NYSE:

NRT

) shares currently have a dividend yield of 14.50%.

North European Oil Royalty Trust, a grantor trust, holds overriding royalty rights covering gas and oil production in concessions or leases in the Federal Republic of Germany. It holds these rights under contracts with German exploration and development subsidiaries of ExxonMobil Corp. The company has a P/E ratio of 7.02.

The average volume for North European Oil Royalty has been 20,800 shares per day over the past 30 days. North European Oil Royalty has a market cap of $91.0 million and is part of the financial services industry. Shares are down 18.4% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates

North European Oil Royalty

as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • NRT has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.03, which illustrates the ability to avoid short-term cash problems.
  • The gross profit margin for NORTH EUROPEAN OIL RTY TR is currently very high, coming in at 100.00%. NRT has managed to maintain the strong profit margin since the same quarter of last year. Despite the mixed results of the gross profit margin, NRT's net profit margin of 95.75% significantly outperformed against the industry.
  • Despite the weak revenue results, NRT has outperformed against the industry average of 33.1%. Since the same quarter one year prior, revenues fell by 22.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Looking at the price performance of NRT's shares over the past 12 months, there is not much good news to report: the stock is down 48.08%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • NORTH EUROPEAN OIL RTY TR's earnings per share declined by 23.4% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, NORTH EUROPEAN OIL RTY TR reported lower earnings of $1.97 versus $2.26 in the prior year.

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BRASILAGRO - CIA Bras de Prop Agricolas

Dividend Yield: 12.00%

BRASILAGRO - CIA Bras de Prop Agricolas

(NYSE:

LND

) shares currently have a dividend yield of 12.00%.

Brasilagro Companhia Brasileira de Propriedades Agricolas, together with its subsidiaries, engages in agriculture, cattle raising, and forestry activities in Brazil. The company operates through three segments: Grains, Sugarcane, and Real Estate.

The average volume for BRASILAGRO - CIA Bras de Prop Agricolas has been 1,800 shares per day over the past 30 days. BRASILAGRO - CIA Bras de Prop Agricolas has a market cap of $172.9 million and is part of the food & beverage industry. Shares are down 5.4% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

BRASILAGRO - CIA Bras de Prop Agricolas

as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • LND's very impressive revenue growth greatly exceeded the industry average of 9.3%. Since the same quarter one year prior, revenues leaped by 158.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • LND's debt-to-equity ratio is very low at 0.15 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, LND has a quick ratio of 2.02, which demonstrates the ability of the company to cover short-term liquidity needs.
  • In its most recent trading session, LND 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. 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.
  • Net operating cash flow has decreased to $11.57 million or 33.18% 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.

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