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."

BlackRock Capital Investment

Dividend Yield: 11.00%

BlackRock Capital Investment

(NASDAQ:

BKCC

) shares currently have a dividend yield of 11.00%.

BlackRock Capital Investment Corporation, formerly known as BlackRock Kelso Capital Corporation, is a Business Development Company specializing in investments in middle market companies. The fund invests in all industries. The company has a P/E ratio of 5.34.

The average volume for BlackRock Capital Investment has been 457,100 shares per day over the past 30 days. BlackRock Capital Investment has a market cap of $557.4 million and is part of the financial services industry. Shares are down 17.9% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates

BlackRock Capital Investment

as a

hold

. 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, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • The gross profit margin for BLACKROCK CAPITAL INVT CORP is currently very high, coming in at 74.60%. 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 -127.94% is in-line with the industry average.
  • Despite the weak revenue results, BKCC has outperformed against the industry average of 24.5%. Since the same quarter one year prior, revenues slightly dropped by 3.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • BLACKROCK CAPITAL INVT CORP 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 two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, BLACKROCK CAPITAL INVT CORP reported lower earnings of $0.54 versus $1.70 in the prior year. This year, the market expects an improvement in earnings ($1.01 versus $0.54).
  • 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 268.5% when compared to the same quarter one year ago, falling from $22.66 million to -$38.18 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Capital Markets industry and the overall market, BLACKROCK CAPITAL INVT CORP's return on equity significantly trails that of both the industry average and the S&P 500.

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Ellomay Capital

Dividend Yield: 11.80%

Ellomay Capital

(AMEX:

ELLO

) shares currently have a dividend yield of 11.80%.

Ellomay Capital Ltd. produces renewable and clean energy in Italy and Spain. It owns 12 photovoltaic plants in Italy with an aggregate installed capacity of approximately 22.6 megawatt peak (MWp); and 4 photovoltaic plants in Spain with an aggregate installed capacity of approximately 7.9 MWp. The company has a P/E ratio of 11.14.

The average volume for Ellomay Capital has been 1,500 shares per day over the past 30 days. Ellomay Capital has a market cap of $81.2 million and is part of the utilities industry. Shares are down 11.7% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates

Ellomay Capital

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, notable return on equity and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • The debt-to-equity ratio is somewhat low, currently at 0.62, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with this, the company maintains a quick ratio of 2.82, which clearly demonstrates the ability to cover short-term cash 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. When compared to other companies in the Independent Power Producers & Energy Traders industry and the overall market, ELLOMAY CAPITAL LTD's return on equity has significantly outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • The gross profit margin for ELLOMAY CAPITAL LTD is rather high; currently it is at 58.08%. 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 -5.39% trails the industry average.
  • 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 Independent Power Producers & Energy Traders industry. The net income has significantly decreased by 106.7% when compared to the same quarter one year ago, falling from $1.79 million to -$0.12 million.
  • Net operating cash flow has significantly decreased to $0.33 million or 81.56% 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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TriplePoint Venture Growth BDC

Dividend Yield: 13.30%

TriplePoint Venture Growth BDC

(NYSE:

TPVG

) shares currently have a dividend yield of 13.30%.

TriplePoint Venture Growth BDC Corp is a business development company specializing investments in growth stage. It also provides debt financing to venture growth space companies which includes growth capital loans, equipment financings, revolving loans, and direct equity investments. The company has a P/E ratio of 6.94.

The average volume for TriplePoint Venture Growth BDC has been 67,300 shares per day over the past 30 days. TriplePoint Venture Growth BDC has a market cap of $176.9 million and is part of the financial services industry. Shares are down 9.9% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates

TriplePoint Venture Growth BDC

as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 24.5%. Since the same quarter one year prior, revenues slightly increased by 6.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • When compared to other companies in the Capital Markets industry and the overall market, TRIPLEPOINT VENTURE GWTH BDC's return on equity is below that of both the industry average and the S&P 500.
  • The gross profit margin for TRIPLEPOINT VENTURE GWTH BDC is rather high; currently it is at 68.60%. Regardless of TPVG's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TPVG's net profit margin of 0.16% is significantly lower than the industry average.
  • Net operating cash flow has significantly decreased to -$7.77 million or 79.41% when compared to the same quarter last year. Despite a decrease in cash flow of 79.41%, TRIPLEPOINT VENTURE GWTH BDC is still significantly exceeding the industry average of -198.91%.
  • 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 99.6% when compared to the same quarter one year ago, falling from $4.78 million to $0.02 million.

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