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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."

BioMed Realty

Dividend Yield: 5.00%

BioMed Realty

(NYSE:

BMR

) shares currently have a dividend yield of 5.00%.

BioMed Realty Trust, Inc. operates as a real estate investment trust (REIT) that focuses on providing real estate to the life science industry in the United States. The company has a P/E ratio of 20.80.

The average volume for BioMed Realty has been 1,498,700 shares per day over the past 30 days. BioMed Realty has a market cap of $4.2 billion and is part of the real estate industry. Shares are down 3.8% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates

BioMed Realty

TheStreet Recommends

as a

hold

. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, reasonable valuation levels and growth in earnings per share. 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:

  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Real Estate Investment Trusts (REITs) industry average. The net income increased by 26.5% when compared to the same quarter one year prior, rising from $18.64 million to $23.58 million.
  • BMR, with its decline in revenue, underperformed when compared the industry average of 7.1%. Since the same quarter one year prior, revenues slightly dropped by 7.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • In its most recent trading session, BMR 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. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • Net operating cash flow has decreased to $55.49 million or 23.60% 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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Columbia Property

Dividend Yield: 5.00%

Columbia Property

(NYSE:

CXP

) shares currently have a dividend yield of 5.00%.

Columbia Property Trust, Inc is an equity real estate investment trust. The firm invests in the real estate markets of the United States. It focuses on investing in and managing high-quality commercial office properties. The firm was formerly known as Wells Real Estate Investment Trust II Inc. The company has a P/E ratio of 30.95.

The average volume for Columbia Property has been 767,300 shares per day over the past 30 days. Columbia Property has a market cap of $3.0 billion and is part of the real estate industry. Shares are down 5.8% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates

Columbia Property

as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including poor profit margins and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • CXP's revenue growth has slightly outpaced the industry average of 7.1%. Since the same quarter one year prior, revenues slightly increased by 8.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • COLUMBIA PROPERTY TRUST INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, COLUMBIA PROPERTY TRUST INC increased its bottom line by earning $0.76 versus $0.21 in the prior year. For the next year, the market is expecting a contraction of 75.0% in earnings ($0.19 versus $0.76).
  • CXP has underperformed the S&P 500 Index, declining 5.48% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • The gross profit margin for COLUMBIA PROPERTY TRUST INC is rather low; currently it is at 21.05%. Regardless of CXP's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, CXP's net profit margin of 5.80% is significantly lower than the industry average.

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CenterPoint Energy

Dividend Yield: 5.10%

CenterPoint Energy

(NYSE:

CNP

) shares currently have a dividend yield of 5.10%.

CenterPoint Energy, Inc. operates as a public utility holding company in the United States. The company has a P/E ratio of 16.06.

The average volume for CenterPoint Energy has been 3,634,200 shares per day over the past 30 days. CenterPoint Energy has a market cap of $8.4 billion and is part of the utilities industry. Shares are down 16.2% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates

CenterPoint Energy

as a

hold

. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

Highlights from the ratings report include:

  • Net operating cash flow has increased to $456.00 million or 37.34% when compared to the same quarter last year. Despite an increase in cash flow, CENTERPOINT ENERGY INC's average is still marginally south of the industry average growth rate of 42.14%.
  • CNP, with its decline in revenue, underperformed when compared the industry average of 7.5%. Since the same quarter one year prior, revenues fell by 18.7%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Multi-Utilities industry average. The net income has significantly decreased by 28.0% when compared to the same quarter one year ago, falling from $107.00 million to $77.00 million.
  • Currently the debt-to-equity ratio of 1.88 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. To add to this, CNP has a quick ratio of 0.59, this demonstrates the lack of ability of the company to cover short-term liquidity needs.

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