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."

Dorchester Minerals

Dividend Yield: 7.40%

Dorchester Minerals

(NASDAQ:

DMLP

) shares currently have a dividend yield of 7.40%.

Dorchester Minerals, L.P. engages in the acquisition, ownership, and administration of producing and nonproducing natural gas and crude oil royalty, net profits, and leasehold interests in the United States. The company has a P/E ratio of 25.71.

The average volume for Dorchester Minerals has been 82,100 shares per day over the past 30 days. Dorchester Minerals has a market cap of $331.3 million and is part of the financial services industry. Shares are up 9.2% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

Dorchester Minerals

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, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • DMLP 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 this, the company maintains a quick ratio of 23.89, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for DORCHESTER MINERALS -LP is currently very high, coming in at 86.80%. Regardless of DMLP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, DMLP's net profit margin of 36.86% significantly outperformed against the industry.
  • DMLP, with its decline in revenue, underperformed when compared the industry average of 34.6%. Since the same quarter one year prior, revenues fell by 47.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • DORCHESTER MINERALS -LP 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. During the past fiscal year, DORCHESTER MINERALS -LP reported lower earnings of $0.42 versus $1.42 in the prior year.
  • Net operating cash flow has significantly decreased to $5.22 million or 51.02% 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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WhiteHorse Finance

Dividend Yield: 14.00%

WhiteHorse Finance

(NASDAQ:

WHF

) shares currently have a dividend yield of 14.00%.

Whitehorse Finance, LLC is a business development company. The company has a P/E ratio of 6.86.

The average volume for WhiteHorse Finance has been 36,100 shares per day over the past 30 days. WhiteHorse Finance has a market cap of $152.1 million and is part of the financial services industry. Shares are down 11.6% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

TheStreet Recommends

WhiteHorse Finance

as a

hold

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

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 4.5%. Since the same quarter one year prior, revenues slightly increased by 8.4%. 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.
  • The gross profit margin for WHITEHORSE FINANCE INC is currently very high, coming in at 73.88%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -123.82% is in-line with the industry average.
  • WHITEHORSE FINANCE INC 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, WHITEHORSE FINANCE INC swung to a loss, reporting -$0.18 versus $1.32 in the prior year. This year, the market expects an improvement in earnings ($1.40 versus -$0.18).
  • 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 511.2% when compared to the same quarter one year ago, falling from $3.59 million to -$14.78 million.
  • 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 Capital Markets industry and the overall market, WHITEHORSE FINANCE INC's return on equity significantly trails that of both the industry average and the S&P 500.

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TransMontaigne Partners

Dividend Yield: 7.60%

TransMontaigne Partners

(NYSE:

TLP

) shares currently have a dividend yield of 7.60%.

TransMontaigne Partners L.P. operates as a terminaling and transportation company. The company has a P/E ratio of 16.58.

The average volume for TransMontaigne Partners has been 89,600 shares per day over the past 30 days. TransMontaigne Partners has a market cap of $566.9 million and is part of the energy industry. Shares are up 31.8% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

TransMontaigne Partners

as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 34.6%. Since the same quarter one year prior, revenues slightly increased by 4.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving 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 Oil, Gas & Consumable Fuels industry. The net income increased by 18.3% when compared to the same quarter one year prior, going from $6.52 million to $7.71 million.
  • 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 Oil, Gas & Consumable Fuels industry and the overall market, TRANSMONTAIGNE PARTNERS LP'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.
  • TRANSMONTAIGNE PARTNERS LP has improved earnings per share by 27.6% 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, TRANSMONTAIGNE PARTNERS LP reported lower earnings of $1.57 versus $1.90 in the prior year. This year, the market expects an improvement in earnings ($2.09 versus $1.57).
  • TLP's debt-to-equity ratio of 0.65 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. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.50 is very low and demonstrates very weak liquidity.

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