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."

Golar LNG Partners

Dividend Yield: 16.80%

Golar LNG Partners

(NASDAQ:

GMLP

) shares currently have a dividend yield of 16.80%.

Golar LNG Partners LP owns and operates floating storage regasification units (FSRUs) and liquefied natural gas (LNG) carriers in Brazil, the United Arab Emirates, Indonesia, and Kuwait. As of April 29, 2015, it had a fleet of six FSRUs and four LNG carriers. The company has a P/E ratio of 5.97.

The average volume for Golar LNG Partners has been 686,100 shares per day over the past 30 days. Golar LNG Partners has a market cap of $849.6 million and is part of the transportation industry. Shares are down 2.5% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates

Golar LNG Partners

as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 32.6%. Since the same quarter one year prior, revenues slightly increased by 9.2%. 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 GOLAR LNG PARTNERS LP is currently very high, coming in at 84.62%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 28.62% significantly outperformed against the industry average.
  • Net operating cash flow has decreased to $59.57 million or 35.75% when compared to the same quarter last year. Despite a decrease in cash flow of 35.75%, GOLAR LNG PARTNERS LP is in line with the industry average cash flow growth rate of -39.19%.
  • The debt-to-equity ratio is very high at 2.92 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.

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Chimera Investment

Dividend Yield: 14.90%

Chimera Investment

(NYSE:

CIM

) shares currently have a dividend yield of 14.90%.

Chimera Investment Corporation operates as a real estate investment trust in the United States. The company has a P/E ratio of 10.32.

The average volume for Chimera Investment has been 2,004,800 shares per day over the past 30 days. Chimera Investment has a market cap of $2.4 billion and is part of the real estate industry. Shares are down 5.6% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates

Chimera Investment

as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, attractive valuation levels 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 net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 1678.4% when compared to the same quarter one year prior, rising from $6.49 million to $115.38 million.
  • CHIMERA INVESTMENT CORP 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, CHIMERA INVESTMENT CORP reported lower earnings of $1.29 versus $2.90 in the prior year. This year, the market expects an improvement in earnings ($2.12 versus $1.29).
  • CIM has underperformed the S&P 500 Index, declining 20.75% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • 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. When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, CHIMERA INVESTMENT CORP's return on equity is below that of both the industry average and the S&P 500.

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Corrections Corp of America

Dividend Yield: 7.50%

Corrections Corp of America

(NYSE:

CXW

) shares currently have a dividend yield of 7.50%.

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 15.35.

The average volume for Corrections Corp of America has been 911,100 shares per day over the past 30 days. Corrections Corp of America has a market cap of $3.4 billion and is part of the real estate industry. Shares are up 8.3% 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 increase in net income, revenue growth and notable return on equity. 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:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 62.0% when compared to the same quarter one year prior, rising from $30.01 million to $48.60 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 6.8%. Since the same quarter one year prior, revenues slightly increased by 5.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • CORRECTIONS CORP AMER reported significant earnings per share improvement 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, CORRECTIONS CORP AMER increased its bottom line by earning $1.88 versus $1.66 in the prior year. For the next year, the market is expecting a contraction of 4.8% in earnings ($1.79 versus $1.88).
  • CXW'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 27.59%, 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. 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 gross profit margin for CORRECTIONS CORP AMER is currently lower than what is desirable, coming in at 30.57%. Regardless of CXW's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, CXW's net profit margin of 10.85% is significantly lower than the industry average.

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