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 "Sell."

Crestwood Equity Partners

Dividend Yield: 8.30%

Crestwood Equity Partners

(NYSE:

CEQP

) shares currently have a dividend yield of 8.30%.

Crestwood Equity Partners LP is engaged in natural gas storage business in Texas and an NGL and crude oil supply and logistics business that serves customers in the United States and Canada. The company has a P/E ratio of 22.07.

The average volume for Crestwood Equity Partners has been 580,400 shares per day over the past 30 days. Crestwood Equity Partners has a market cap of $1.2 billion and is part of the energy industry. Shares are down 22.8% year-to-date as of the close of trading on Thursday.

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

Crestwood Equity Partners

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and poor profit margins.

Highlights from the ratings report include:

  • CEQP'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 49.93%, 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. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, CEQP is still more expensive than most of the other companies in its industry.
  • The gross profit margin for CRESTWOOD EQUITY PARTNERS LP is rather low; currently it is at 20.94%. Regardless of CEQP's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, CEQP's net profit margin of 3.85% compares favorably to the industry average.
  • 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 Oil, Gas & Consumable Fuels industry and the overall market, CRESTWOOD EQUITY PARTNERS LP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The current debt-to-equity ratio, 0.53, is low and is below the industry average, implying that there has been successful management of debt levels.
  • Net operating cash flow has significantly increased by 69.54% to $125.80 million when compared to the same quarter last year. In addition, CRESTWOOD EQUITY PARTNERS LP has also vastly surpassed the industry average cash flow growth rate of -13.29%.

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

Rentech Nitrogen Partners

Dividend Yield: 8.10%

Rentech Nitrogen Partners

(NYSE:

RNF

) shares currently have a dividend yield of 8.10%.

Rentech Nitrogen Partners, L.P. manufactures and sells nitrogen fertilizer products in the United States and internationally. The company operates in two segments, East Dubuque and Pasadena.

The average volume for Rentech Nitrogen Partners has been 143,700 shares per day over the past 30 days. Rentech Nitrogen Partners has a market cap of $579.7 million and is part of the chemicals industry. Shares are up 40% year-to-date as of the close of trading on Thursday.

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

Rentech Nitrogen Partners

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • The debt-to-equity ratio is very high at 62.14 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, RNF has a quick ratio of 0.66, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Chemicals industry and the overall market, RENTECH NITROGEN PARTNERS LP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for RENTECH NITROGEN PARTNERS LP is rather low; currently it is at 17.20%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -3.68% is significantly below that of the industry average.
  • RNF has underperformed the S&P 500 Index, declining 19.60% 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.
  • RNF, with its decline in revenue, slightly underperformed the industry average of 4.7%. Since the same quarter one year prior, revenues slightly dropped by 9.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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

Ares Commercial Real Estate

Dividend Yield: 8.40%

Ares Commercial Real Estate

(NYSE:

ACRE

) shares currently have a dividend yield of 8.40%.

Ares Commercial Real Estate Corporation, a specialty finance company, is engaged in principal lending and mortgage banking of commercial real estate (CRE) investments. The company operates in two segments: Principal Lending and Mortgage Banking. The company has a P/E ratio of 19.95.

The average volume for Ares Commercial Real Estate has been 119,900 shares per day over the past 30 days. Ares Commercial Real Estate has a market cap of $342.4 million and is part of the real estate industry. Shares are up 4.8% year-to-date as of the close of trading on Thursday.

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

Ares Commercial Real Estate

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • 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 Real Estate Investment Trusts (REITs) industry. The net income has significantly decreased by 40.4% when compared to the same quarter one year ago, falling from $6.88 million to $4.10 million.
  • The share price of ARES COMMERCIAL REAL ESTATE has not done very well: it is down 10.05% 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. 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.
  • 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. When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, ARES COMMERCIAL REAL ESTATE's return on equity is below that of both the industry average and the S&P 500.
  • ARES COMMERCIAL REAL ESTATE's earnings per share declined by 44.0% 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, ARES COMMERCIAL REAL ESTATE increased its bottom line by earning $0.73 versus $0.10 in the prior year. This year, the market expects an improvement in earnings ($0.83 versus $0.73).
  • The gross profit margin for ARES COMMERCIAL REAL ESTATE is rather high; currently it is at 56.49%. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, ACRE's net profit margin of 17.80% significantly trails the industry average.

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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