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."

Triangle Capital

Dividend Yield: 10.50%

Triangle Capital

(NYSE:

TCAP

) shares currently have a dividend yield of 10.50%.

Triangle Capital Corporation is a business development company specializing in private equity and mezzanine investments. The company has a P/E ratio of 10.27.

The average volume for Triangle Capital has been 121,700 shares per day over the past 30 days. Triangle Capital has a market cap of $692.1 million and is part of the financial services industry. Shares are up 8.9% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

Triangle Capital

as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 22.6%. Since the same quarter one year prior, revenues slightly increased by 3.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • TRIANGLE CAPITAL CORP 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. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, TRIANGLE CAPITAL CORP increased its bottom line by earning $1.44 versus $1.04 in the prior year. This year, the market expects an improvement in earnings ($2.11 versus $1.44).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Capital Markets industry and the overall market on the basis of return on equity, TRIANGLE CAPITAL CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • TCAP has underperformed the S&P 500 Index, declining 13.72% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

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WhiteHorse Finance

Dividend Yield: 14.20%

WhiteHorse Finance

(NASDAQ:

WHF

) shares currently have a dividend yield of 14.20%.

Whitehorse Finance, LLC is a business development company. The company has a P/E ratio of 6.75.

The average volume for WhiteHorse Finance has been 29,100 shares per day over the past 30 days. WhiteHorse Finance has a market cap of $182.9 million and is part of the financial services industry. Shares are down 12% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

WhiteHorse Finance

as a

hold

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

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 22.6%. Since the same quarter one year prior, revenues slightly increased by 8.4%. 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 increased to -$43.38 million or 36.15% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -2.34%.
  • The gross profit margin for WHITEHORSE FINANCE INC is currently very high, coming in at 73.87%. 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 -123.83% is in-line with the industry average.
  • 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 511.2% when compared to the same quarter one year ago, falling from $3.59 million to -$14.78 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 Capital Markets industry and the overall market on the basis of return on equity, WHITEHORSE FINANCE INC underperformed against that of the industry average and is significantly less than that of the S&P 500.

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TriplePoint Venture Growth BDC

Dividend Yield: 13.80%

TriplePoint Venture Growth BDC

(NYSE:

TPVG

) shares currently have a dividend yield of 13.80%.

TriplePoint Venture Growth BDC Corp is a business development company specializing investments in growth stage. It also provides debt financing to venture growth space companies which includes growth capital loans, equipment financings, revolving loans, and direct equity investments. The company has a P/E ratio of 6.69.

The average volume for TriplePoint Venture Growth BDC has been 55,600 shares per day over the past 30 days. TriplePoint Venture Growth BDC has a market cap of $170.0 million and is part of the financial services industry. Shares are down 11.7% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

TriplePoint Venture Growth BDC

as a

hold

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

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 22.6%. Since the same quarter one year prior, revenues slightly increased by 6.9%. 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.
  • Compared to other companies in the Capital Markets industry and the overall market on the basis of return on equity, TRIPLEPOINT VENTURE GWTH BDC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • The gross profit margin for TRIPLEPOINT VENTURE GWTH BDC is rather high; currently it is at 68.60%. Regardless of TPVG's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TPVG's net profit margin of 0.16% is significantly lower than the industry average.
  • 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 99.6% when compared to the same quarter one year ago, falling from $4.78 million to $0.02 million.
  • Net operating cash flow has significantly decreased to -$7.77 million or 79.41% 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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