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."

CVR Partners

Dividend Yield: 16.60%

CVR Partners

(NYSE:

UAN

) shares currently have a dividend yield of 16.60%.

CVR Partners, LP produces, distributes, and markets nitrogen fertilizer products in North America. It provides ammonia products for industrial and agricultural customers; and urea ammonium nitrate (UAN) products for agricultural customers. The company has a P/E ratio of 7.65.

The average volume for CVR Partners has been 239,000 shares per day over the past 30 days. CVR Partners has a market cap of $475.3 million and is part of the chemicals industry. Shares are down 8.2% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates

CVR 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, poor profit margins, weak operating cash flow and disappointing return on equity.

Highlights from the ratings report include:

  • CVR 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, 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 30.6% in earnings ($0.72 versus $1.03).
  • 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 Chemicals industry. The net income has significantly decreased by 206.0% when compared to the same quarter one year ago, falling from $12.72 million to -$13.48 million.
  • The gross profit margin for CVR PARTNERS LP is rather low; currently it is at 16.72%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -27.32% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to $1.14 million or 94.23% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Chemicals industry and the overall market on the basis of return on equity, CVR PARTNERS LP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

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Nordic American Offshore

Dividend Yield: 11.20%

Nordic American Offshore

(NYSE:

NAO

) shares currently have a dividend yield of 11.20%.

Nordic American Offshore Ltd. owns and operates platform supply vessels in the North Sea. It owns and operates eight vessels. The company was founded in 2013 and is based in Hamilton, Bermuda.

The average volume for Nordic American Offshore has been 167,700 shares per day over the past 30 days. Nordic American Offshore has a market cap of $96.3 million and is part of the transportation industry. Shares are down 13.3% year-to-date as of the close of trading on Monday.

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TheStreet Recommends

TheStreet Ratings rates

Nordic American Offshore

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • NORDIC AMERICAN OFFSHORE 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 year. We anticipate that this should continue in the coming year. During the past fiscal year, NORDIC AMERICAN OFFSHORE swung to a loss, reporting -$0.46 versus $0.31 in the prior year. For the next year, the market is expecting a contraction of 47.0% in earnings (-$0.68 versus -$0.46).
  • 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 Energy Equipment & Services industry and the overall market on the basis of return on equity, NORDIC AMERICAN OFFSHORE underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • The gross profit margin for NORDIC AMERICAN OFFSHORE is currently extremely low, coming in at 14.53%. It has decreased significantly from the same period last year.
  • Net operating cash flow has significantly decreased to -$1.64 million or 125.48% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 53.56%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 171.42% compared to the year-earlier quarter. 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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Fifth Street Asset Management

Dividend Yield: 18.00%

Fifth Street Asset Management

(NASDAQ:

FSAM

) shares currently have a dividend yield of 18.00%.

Fifth Street Asset Management Inc. is an asset management holding company. The firm provides asset management services through its subsidiaries. Fifth Street Asset Management Inc. was founded in 1998 and is headquartered in Greenwich, Connecticut. The company has a P/E ratio of 7.39.

The average volume for Fifth Street Asset Management has been 191,500 shares per day over the past 30 days. Fifth Street Asset Management has a market cap of $183.4 million and is part of the financial services industry. Shares are up 15.6% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates

Fifth Street Asset Management

as a

sell

. Among the areas we feel are negative, one of the most important has been unimpressive growth in net income over time.

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 Capital Markets industry. The net income has significantly decreased by 91.7% when compared to the same quarter one year ago, falling from $14.18 million to $1.17 million.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 4.3%. Since the same quarter one year prior, revenues slightly dropped by 1.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • 45.48% is the gross profit margin for FIFTH STREET ASSET MGMT INC which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 4.69% trails the industry average.
  • Net operating cash flow has fallen to -$291.34 million from having none in the same quarter last year. Since the company had no net operating cash flow for the prior period, we cannot calculate a percent change in order to compare its growth rate with that of its industry average.

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