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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."

Fibria Celulose

Dividend Yield: 15.00%

Fibria Celulose

(NYSE:

FBR

) shares currently have a dividend yield of 15.00%.

Fibria Celulose S.A. engages in the production, sale, and export of eucalyptus pulp, wood, and other forest products. The company has a P/E ratio of 29.88.

The average volume for Fibria Celulose has been 1,388,800 shares per day over the past 30 days. Fibria Celulose has a market cap of $7.1 billion and is part of the consumer non-durables industry. Shares are up 5.1% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates

Fibria Celulose

TheStreet Recommends

as a

hold

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share and increase in net income. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from the ratings report include:

  • 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.
  • FIBRIA CELULOSE SA has improved earnings per share by 9.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, FIBRIA CELULOSE SA turned its bottom line around by earning $0.11 versus -$0.54 in the prior year. This year, the market expects an improvement in earnings ($1.45 versus $0.11).
  • The gross profit margin for FIBRIA CELULOSE SA is rather high; currently it is at 65.02%. 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 -38.09% is in-line with the industry average.
  • FBR, with its decline in revenue, underperformed when compared the industry average of 11.7%. Since the same quarter one year prior, revenues fell by 27.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • 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 Paper & Forest Products industry and the overall market, FIBRIA CELULOSE SA's return on equity significantly trails that of both the industry average and the S&P 500.

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CBL & Associates Properties

Dividend Yield: 8.60%

CBL & Associates Properties

(NYSE:

CBL

) shares currently have a dividend yield of 8.60%.

CBL & Associates Properties, Inc. is a public real estate investment trust. It engages in acquisition, development, and management of properties. The fund invests in the real estate markets of United States. Its portfolio consists of enclosed malls and open-air centers. The company has a P/E ratio of 13.38.

The average volume for CBL & Associates Properties has been 1,736,400 shares per day over the past 30 days. CBL & Associates Properties has a market cap of $2.1 billion and is part of the real estate industry. Shares are down 35.4% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates

CBL & Associates Properties

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 unimpressive growth in net income, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 6.1%. Since the same quarter one year prior, revenues slightly increased by 1.5%. 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.
  • 41.72% is the gross profit margin for CBL & ASSOCIATES PPTYS INC which we consider to be strong. Regardless of CBL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CBL's net profit margin of 14.06% is significantly lower than the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 34.74%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 31.81% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • 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 Real Estate Investment Trusts (REITs) industry average. The net income has decreased by 23.9% when compared to the same quarter one year ago, dropping from $49.34 million to $37.57 million.

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Corrections Corp of America

Dividend Yield: 8.70%

Corrections Corp of America

(NYSE:

CXW

) shares currently have a dividend yield of 8.70%.

Corrections Corporation of America, together with its subsidiaries, owns and operates privatized correctional and detention facilities in the United States. The company has a P/E ratio of 14.43.

The average volume for Corrections Corp of America has been 885,400 shares per day over the past 30 days. Corrections Corp of America has a market cap of $2.9 billion and is part of the real estate industry. Shares are down 31.5% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates

Corrections Corp of America

as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:

  • CXW's revenue growth has slightly outpaced the industry average of 6.1%. Since the same quarter one year prior, revenues rose by 12.6%. 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.
  • Net operating cash flow has decreased to $90.49 million or 21.16% 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.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Real Estate Investment Trusts (REITs) industry average, but is greater than that of the S&P 500. The net income has decreased by 11.9% when compared to the same quarter one year ago, dropping from $57.55 million to $50.68 million.

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