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."

Scorpio Tankers

Dividend Yield: 4.90%

Scorpio Tankers

(NYSE:

STNG

) shares currently have a dividend yield of 4.90%.

Scorpio Tankers Inc., together with its subsidiaries, is engaged in the seaborne transportation of refined petroleum products and crude oil worldwide. The company has a P/E ratio of 31.77.

The average volume for Scorpio Tankers has been 1,707,700 shares per day over the past 30 days. Scorpio Tankers has a market cap of $1.4 billion and is part of the conglomerates industry. Shares are down 28% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

Scorpio Tankers

as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and poor profit margins.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 3.0%. Since the same quarter one year prior, revenues rose by 11.5%. 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.
  • The debt-to-equity ratio is somewhat low, currently at 0.61, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with this, the company maintains a quick ratio of 4.67, which clearly demonstrates the ability to cover short-term cash needs.
  • SCORPIO TANKERS 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. 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, SCORPIO TANKERS INC turned its bottom line around by earning $0.14 versus -$0.65 in the prior year. This year, the market expects an improvement in earnings ($0.16 versus $0.14).
  • 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 Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 114.5% when compared to the same quarter one year ago, falling from $3.97 million to -$0.57 million.
  • The share price of SCORPIO TANKERS INC has not done very well: it is down 17.99% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.

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Darden Restaurants

Dividend Yield: 4.30%

Darden Restaurants

(NYSE:

DRI

) shares currently have a dividend yield of 4.30%.

Darden Restaurants, Inc. owns and operates full service restaurants in the United States and Canada. It operates restaurants under the Olive Garden, LongHorn Steakhouse, Bahama Breeze, Seasons 52, The Capital Grille, Eddie V's, and Yard House brand names. The company has a P/E ratio of 54.28.

The average volume for Darden Restaurants has been 1,786,200 shares per day over the past 30 days. Darden Restaurants has a market cap of $6.8 billion and is part of the leisure industry. Shares are down 5.1% year-to-date as of the close of trading on Friday.

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

Darden Restaurants

as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:

  • DRI's revenue growth has slightly outpaced the industry average of 5.8%. Since the same quarter one year prior, revenues slightly increased by 4.2%. 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 debt-to-equity ratio is somewhat low, currently at 0.76, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.32 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • The gross profit margin for DARDEN RESTAURANTS INC is rather low; currently it is at 19.63%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.20% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to $44.60 million or 79.44% 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: 5.00%

Ramco-Gershenson Properties

(NYSE:

RPT

) shares currently have a dividend yield of 5.00%.

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 550,900 shares per day over the past 30 days. Ramco-Gershenson Properties has a market cap of $1.1 billion and is part of the real estate industry. Shares are up 2.2% year-to-date as of the close of trading on Friday.

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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 and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, 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 11.5%. Since the same quarter one year prior, revenues rose by 18.1%. 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.
  • In its most recent trading session, RPT has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. 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 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. Stable earnings per share over the past year indicate the company has managed its earnings and share float. We anticipate this stability to falter in the coming year and, in turn, the company to deliver lower earnings per share than prior full year. During the past fiscal year, RAMCO-GERSHENSON PROPERTIES's EPS of $0.01 remained unchanged from the prior years' EPS of $0.01. For the next year, the market is expecting a contraction of 1200.0% in earnings (-$0.11 versus $0.01).
  • The gross profit margin for RAMCO-GERSHENSON PROPERTIES is currently extremely low, coming in at 14.47%. It has decreased significantly from the same period last year. Along with this, the net profit margin of 2.15% significantly trails the industry average.
  • Net operating cash flow has declined marginally to $27.55 million or 3.73% 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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