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."

Overseas Shipholding Group

Dividend Yield: 14.00%

Overseas Shipholding Group

(AMEX:

OSGB

) shares currently have a dividend yield of 14.00%.

Overseas Shipholding Group, Inc. primarily engages in the ocean transportation of crude oil and petroleum products. The company has a P/E ratio of 4.65.

The average volume for Overseas Shipholding Group has been 28,900 shares per day over the past 30 days. Overseas Shipholding Group has a market cap of $799.1 million and is part of the transportation industry. Shares are down 31.7% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates

Overseas Shipholding Group

as a

sell

. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • OSGB'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 45.95%, 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.
  • OSGB's debt-to-equity ratio of 1.00 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. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 5.31 is very high and demonstrates very strong liquidity.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, OVERSEAS SHIPHOLDING GROUP's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • The gross profit margin for OVERSEAS SHIPHOLDING GROUP is rather high; currently it is at 54.25%. It has increased significantly from the same period last year. Along with this, the net profit margin of 71.70% significantly outperformed against the industry average.

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Natural Resources Partners

Dividend Yield: 19.00%

Natural Resources Partners

(NYSE:

NRP

) shares currently have a dividend yield of 19.00%.

Natural Resource Partners L.P., through its subsidiaries, owns, manages, and leases mineral properties in the United States.

The average volume for Natural Resources Partners has been 55,800 shares per day over the past 30 days. Natural Resources Partners has a market cap of $116.1 million and is part of the metals & mining industry. Shares are down 23.9% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates

Natural Resources Partners

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, generally high debt management risk, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • NATURAL RESOURCE PARTNERS LP 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. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, NATURAL RESOURCE PARTNERS LP reported lower earnings of $9.60 versus $15.40 in the prior year. For the next year, the market is expecting a contraction of 21.9% in earnings ($7.50 versus $9.60).
  • 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 1755.3% when compared to the same quarter one year ago, falling from $36.17 million to -$598.76 million.
  • The debt-to-equity ratio is very high at 13.75 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, NRP maintains a poor quick ratio of 0.82, which illustrates the inability to avoid short-term cash problems.
  • 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 Oil, Gas & Consumable Fuels industry and the overall market, NATURAL RESOURCE PARTNERS LP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has declined marginally to $55.24 million or 3.86% when compared to the same quarter last year. Despite a decrease in cash flow NATURAL RESOURCE PARTNERS LP is still fairing well by exceeding its industry average cash flow growth rate of -39.95%.

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Tribune Publishing

Dividend Yield: 7.60%

Tribune Publishing

(NYSE:

TPUB

) shares currently have a dividend yield of 7.60%.

Tribune Publishing Company, a multiplatform media and marketing solutions company, publishes and operates newspapers for audiences and advertisers.

The average volume for Tribune Publishing has been 138,500 shares per day over the past 30 days. Tribune Publishing has a market cap of $241.1 million and is part of the media industry. Shares are up 0.2% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates

Tribune Publishing

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

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 Media industry. The net income has significantly decreased by 100.5% when compared to the same quarter one year ago, falling from $15.47 million to -$0.08 million.
  • The gross profit margin for TRIBUNE PUBLISHING CO is currently extremely low, coming in at 13.07%. Regardless of TPUB's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, TPUB's net profit margin of -0.01% significantly underperformed when compared to the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 57.26%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 100.00% compared to the year-earlier 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.
  • TRIBUNE PUBLISHING CO 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. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, TRIBUNE PUBLISHING CO swung to a loss, reporting -$0.10 versus $1.65 in the prior year. This year, the market expects an improvement in earnings ($1.35 versus -$0.10).
  • Despite its growing revenue, the company underperformed as compared with the industry average of 7.9%. Since the same quarter one year prior, revenues slightly increased by 0.9%. 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.

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