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

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."

Solar Capital

Dividend Yield: 7.90%

Solar Capital

(NASDAQ:

SLRC

) shares currently have a dividend yield of 7.90%.

Solar Capital Ltd. is a business development company specializing in investments in leveraged middle market companies. The company has a P/E ratio of 17.82.

The average volume for Solar Capital has been 207,400 shares per day over the past 30 days. Solar Capital has a market cap of $855.2 million and is part of the financial services industry. Shares are up 13.6% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates

Solar Capital

as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Capital Markets industry average. The net income increased by 20.8% when compared to the same quarter one year prior, going from $10.57 million to $12.77 million.
  • The gross profit margin for SOLAR CAPITAL LTD is currently very high, coming in at 70.49%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 45.02% significantly outperformed against the industry average.
  • SLRC, with its decline in revenue, underperformed when compared the industry average of 12.8%. Since the same quarter one year prior, revenues fell by 34.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • SLRC has underperformed the S&P 500 Index, declining 10.07% 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.
  • Net operating cash flow has significantly decreased to -$124.12 million or 147.59% 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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Mid-Con Energy Partners

Dividend Yield: 8.10%

Mid-Con Energy Partners

(NASDAQ:

MCEP

) shares currently have a dividend yield of 8.10%.

Mid-Con Energy Partners, LP is engaged in the acquisition, exploitation, development, and production of oil and natural gas properties in North America. The company has a P/E ratio of 4.07.

The average volume for Mid-Con Energy Partners has been 447,800 shares per day over the past 30 days. Mid-Con Energy Partners has a market cap of $144.2 million and is part of the energy industry. Shares are down 0.2% year-to-date as of the close of trading on Tuesday.

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TheStreet Recommends

TheStreet Ratings rates

Mid-Con Energy Partners

as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:

  • MCEP's very impressive revenue growth greatly exceeded the industry average of 20.2%. Since the same quarter one year prior, revenues leaped by 134.2%. 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.
  • MCEP's debt-to-equity ratio of 0.88 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. Despite the fact that MCEP's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.92 is high and demonstrates strong liquidity.
  • The gross profit margin for MID-CON ENERGY PARTNERS -LP is rather low; currently it is at 23.49%. It has decreased significantly from the same period last year. Along with this, the net profit margin of 0.15% trails that of the industry average.
  • Net operating cash flow has decreased to $10.88 million or 23.07% 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.

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

CVR Partners

Dividend Yield: 11.70%

CVR Partners

(NYSE:

UAN

) shares currently have a dividend yield of 11.70%.

CVR Partners, LP is engaged in the production, distribution, and marketing of nitrogen fertilizers in the United States. Its nitrogen fertilizer products include ammonia and urea ammonium nitrate (UAN). The company has a P/E ratio of 13.47.

The average volume for CVR Partners has been 341,700 shares per day over the past 30 days. CVR Partners has a market cap of $1.0 billion and is part of the chemicals industry. Shares are up 45.2% 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

CVR Partners

as a

hold

. The company's strengths can be seen in multiple areas, such as its expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:

  • The gross profit margin for CVR PARTNERS LP is rather high; currently it is at 50.13%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 33.33% significantly outperformed against the industry average.
  • Net operating cash flow has increased to $39.26 million or 20.84% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -5.99%.
  • UAN, with its decline in revenue, slightly underperformed the industry average of 4.7%. Since the same quarter one year prior, revenues fell by 11.7%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The change in net income from the same quarter one year ago has exceeded that of the Chemicals industry average, but is less than that of the S&P 500. The net income has decreased by 11.2% when compared to the same quarter one year ago, dropping from $27.92 million to $24.80 million.
  • CVR PARTNERS LP's earnings per share declined by 10.5% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, CVR PARTNERS LP reported lower earnings of $1.03 versus $1.62 in the prior year. For the next year, the market is expecting a contraction of 6.8% in earnings ($0.96 versus $1.03).

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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