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."

Capital Product Partners

Dividend Yield: 14.20%

Capital Product Partners

(NASDAQ:

CPLP

) shares currently have a dividend yield of 14.20%.

Capital Product Partners L.P., a shipping company, provides marine transportation services in Greece. The company has a P/E ratio of 20.78.

The average volume for Capital Product Partners has been 441,300 shares per day over the past 30 days. Capital Product Partners has a market cap of $795.1 million and is part of the transportation industry. Shares are down 15% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates

Capital Product Partners

as a

hold

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

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 34.3%. Since the same quarter one year prior, revenues rose by 14.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.55, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, CPLP has a quick ratio of 2.30, which demonstrates the ability of the company to cover short-term liquidity needs.
  • CAPITAL PRODUCT PARTNERS LP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. 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, CAPITAL PRODUCT PARTNERS LP reported lower earnings of $0.31 versus $0.99 in the prior year. This year, the market expects an improvement in earnings ($0.45 versus $0.31).
  • CPLP's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 33.57%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. 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 company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CAPITAL PRODUCT PARTNERS LP's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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Ferrellgas Partners

Dividend Yield: 9.50%

Ferrellgas Partners

(NYSE:

FGP

) shares currently have a dividend yield of 9.50%.

Ferrellgas Partners, L.P. distributes and sells propane and related equipment and supplies primarily in the United States. The company transports propane to propane distribution locations, tanks on customers' premises, or to portable propane tanks delivered to retailers. The company has a P/E ratio of 46.89.

The average volume for Ferrellgas Partners has been 237,400 shares per day over the past 30 days. Ferrellgas Partners has a market cap of $1.9 billion and is part of the energy industry. Shares are down 1.3% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates

Ferrellgas Partners

as a

hold

. Among the primary strengths of the company is its generally strong cash flow from operations. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, poor profit margins and feeble growth in the company's earnings per share.

Highlights from the ratings report include:

  • Net operating cash flow has slightly increased to $181.36 million or 4.20% when compared to the same quarter last year. In addition, FERRELLGAS PARTNERS -LP has also modestly surpassed the industry average cash flow growth rate of 2.56%.
  • FGP, with its decline in revenue, slightly underperformed the industry average of 19.5%. Since the same quarter one year prior, revenues fell by 26.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The gross profit margin for FERRELLGAS PARTNERS -LP is rather low; currently it is at 20.99%. Regardless of FGP's low profit margin, it has managed to increase from the same period last year.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, FGP has underperformed the S&P 500 Index, declining 23.07% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.

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Cementos Pacasmayo SAA

Dividend Yield: 7.10%

Cementos Pacasmayo SAA

(NYSE:

CPAC

) shares currently have a dividend yield of 7.10%.

Cementos Pacasmayo S.A.A., a cement company, produces, distributes, and sells cement and cement-related materials in the northern region of Peru. It operates in three segments: Cement, Concrete and Blocks; Quicklime; and Construction Supplies. The company has a P/E ratio of 11.11.

The average volume for Cementos Pacasmayo SAA has been 33,500 shares per day over the past 30 days. Cementos Pacasmayo SAA has a market cap of $711.2 million and is part of the materials & construction industry. Shares are down 30.8% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates

Cementos Pacasmayo SAA

as a

hold

. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. 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:

  • 49.13% is the gross profit margin for CEMENTOS PACASMAYO SAA which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 16.28% significantly outperformed against the industry average.
  • Despite currently having a low debt-to-equity ratio of 0.45, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 2.98 is very high and demonstrates very strong liquidity.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Construction Materials industry average, but is greater than that of the S&P 500. The net income has decreased by 6.9% when compared to the same quarter one year ago, dropping from $14.68 million to $13.67 million.
  • Net operating cash flow has decreased to $12.58 million or 40.75% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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