Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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."

Ensco

Dividend Yield: 10.60%

Ensco

(NYSE:

ESV

) shares currently have a dividend yield of 10.60%.

Ensco plc provides offshore contract drilling services to the oil and gas industry worldwide. The company operates through three segments: Floaters, Jackups, and Other. The company has a P/E ratio of 12.84.

The average volume for Ensco has been 5,232,100 shares per day over the past 30 days. Ensco has a market cap of $6.6 billion and is part of the energy industry. Shares are down 2.8% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates

Ensco

as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, 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 disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 15.9%. Since the same quarter one year prior, revenues slightly increased by 8.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The gross profit margin for ENSCO PLC is rather high; currently it is at 57.87%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 34.04% significantly outperformed against the industry average.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Energy Equipment & Services industry average. The net income increased by 13.4% when compared to the same quarter one year prior, going from $378.80 million to $429.40 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 Energy Equipment & Services industry and the overall market, ENSCO PLC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has declined marginally to $601.90 million or 7.14% 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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Oaktree Capital Group

Dividend Yield: 4.70%

Oaktree Capital Group

(NYSE:

OAK

) shares currently have a dividend yield of 4.70%.

Oaktree Capital Group, LLC operates as a global investment management firm that focuses on alternative markets. The company has a P/E ratio of 12.85.

The average volume for Oaktree Capital Group has been 351,600 shares per day over the past 30 days. Oaktree Capital Group has a market cap of $2.3 billion and is part of the financial services industry. Shares are up 2.2% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates

Oaktree Capital Group

as a

hold

. Among the primary strengths of the company is its respectable return on equity which we feel is likely to continue. At the same time, however, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • OAK, with its decline in revenue, underperformed when compared the industry average of 1.6%. Since the same quarter one year prior, revenues fell by 12.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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, OAKTREE CAPITAL GROUP LLC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • OAKTREE CAPITAL GROUP LLC 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. 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, OAKTREE CAPITAL GROUP LLC increased its bottom line by earning $6.43 versus $3.56 in the prior year. For the next year, the market is expecting a contraction of 50.4% in earnings ($3.19 versus $6.43).
  • 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 56.0% when compared to the same quarter one year ago, falling from $42.95 million to $18.91 million.
  • Net operating cash flow has significantly decreased to -$449.00 million or 336.50% 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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Ramco-Gershenson Properties

Dividend Yield: 4.20%

Ramco-Gershenson Properties

(NYSE:

RPT

) shares currently have a dividend yield of 4.20%.

Ramco-Gershenson Properties Trust, through its subsidiaries, operates as a real estate investment trust (REIT) in the United States. It engages in the ownership, development, acquisition, management, and leasing of community shopping centers, regional malls, and single tenant retail properties.

The average volume for Ramco-Gershenson Properties has been 584,400 shares per day over the past 30 days. Ramco-Gershenson Properties has a market cap of $1.5 billion and is part of the real estate industry. Shares are up 1.8% year-to-date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates

Ramco-Gershenson Properties

as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and poor profit margins.

Highlights from the ratings report include:

  • RPT's revenue growth has slightly outpaced the industry average of 13.6%. Since the same quarter one year prior, revenues rose by 21.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
  • RAMCO-GERSHENSON PROPERTIES has improved earnings per share by 20.0% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. However, the consensus estimates suggest that there will be an upward trend in the coming year. During the past fiscal year, RAMCO-GERSHENSON PROPERTIES increased its bottom line by earning $0.02 versus $0.01 in the prior year. This year, the market expects an improvement in earnings ($0.13 versus $0.02).
  • 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. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, RAMCO-GERSHENSON PROPERTIES's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for RAMCO-GERSHENSON PROPERTIES is currently lower than what is desirable, coming in at 27.09%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 10.98% significantly trails the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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