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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 "Buy."

Banco Santander (Brasil

Dividend Yield: 7.20%

Banco Santander (Brasil

(NYSE:

BSBR

) shares currently have a dividend yield of 7.20%.

Banco Santander (Brasil) S.A. provides banking products and services in Brazil and internationally. It operates in two segments, Commercial Banking and Global Wholesale Banking. The company has a P/E ratio of 0.02.

The average volume for Banco Santander (Brasil has been 1,293,300 shares per day over the past 30 days. Banco Santander (Brasil has a market cap of $45.8 billion and is part of the banking industry. Shares are up 60.7% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

Banco Santander (Brasil

TheStreet Recommends

as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, good cash flow from operations, expanding profit margins and increase in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:

  • BSBR's very impressive revenue growth greatly exceeded the industry average of 0.6%. Since the same quarter one year prior, revenues leaped by 81.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • Net operating cash flow has significantly increased by 154.60% to $815.85 million when compared to the same quarter last year. In addition, BANCO SANTANDER BRASIL -ADR has also vastly surpassed the industry average cash flow growth rate of -80.94%.
  • 49.64% is the gross profit margin for BANCO SANTANDER BRASIL -ADR which we consider to be strong. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, BSBR's net profit margin of 8.06% significantly trails the industry average.
  • The net income growth from the same quarter one year ago has exceeded that of the Commercial Banks industry average, but is less than that of the S&P 500. The net income increased by 0.4% when compared to the same quarter one year prior, going from $506.51 million to $508.36 million.

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Ciner Resources

Dividend Yield: 7.40%

Ciner Resources

(NYSE:

CINR

) shares currently have a dividend yield of 7.40%.

Ciner Resources LP engages in the trona ore mining and soda ash production businesses in the United States and internationally. It processes trona ore into soda ash, which is a raw material in flat glass, container glass, detergents, chemicals, paper, and other consumer and industrial products. The company has a P/E ratio of 12.57.

The average volume for Ciner Resources has been 48,700 shares per day over the past 30 days. Ciner Resources has a market cap of $605.3 million and is part of the metals & mining industry. Shares are up 36.9% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

Ciner Resources

as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • Compared to its closing price of one year ago, CINR's share price has jumped by 29.68%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CINR should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The debt-to-equity ratio is somewhat low, currently at 0.67, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, CINR has a quick ratio of 2.38, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has slightly increased to $36.80 million or 6.05% when compared to the same quarter last year. In addition, CINER RESOURCES LP has also modestly surpassed the industry average cash flow growth rate of 2.10%.
  • 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. In comparison to other companies in the Chemicals industry and the overall market on the basis of return on equity, CINER RESOURCES LP has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.

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New Media Investment Group

Dividend Yield: 7.30%

New Media Investment Group

(NYSE:

NEWM

) shares currently have a dividend yield of 7.30%.

New Media Investment Group Inc. owns, operates, and invests in local media assets in the United States.. The company has a P/E ratio of 10.42.

The average volume for New Media Investment Group has been 308,200 shares per day over the past 30 days. New Media Investment Group has a market cap of $808.7 million and is part of the media industry. Shares are down 9.2% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

New Media Investment Group

as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, reasonable valuation levels and compelling growth in net income. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 3.2%. Since the same quarter one year prior, revenues rose by 19.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.55, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.17, which illustrates the ability to avoid short-term cash problems.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 181.9% when compared to the same quarter one year prior, rising from -$6.07 million to $4.97 million.

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