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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."

One Liberty Properties

Dividend Yield: 7.10%

One Liberty Properties

(NYSE:

OLP

) shares currently have a dividend yield of 7.10%.

One Liberty Properties, Inc., a real estate investment trust (REIT), engages in the acquisition, ownership, and management of commercial real estate properties in the United States. The company has a P/E ratio of 13.82.

The average volume for One Liberty Properties has been 34,900 shares per day over the past 30 days. One Liberty Properties has a market cap of $360.8 million and is part of the real estate industry. Shares are down 8.8% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates

One Liberty Properties

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TheStreet Recommends

as a

buy

. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, solid stock price performance, expanding profit margins 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:

  • After a year of stock price fluctuations, the net result is that OLP's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. 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.
  • OLP, with its decline in revenue, underperformed when compared the industry average of 9.7%. Since the same quarter one year prior, revenues slightly dropped by 0.8%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • 49.82% is the gross profit margin for ONE LIBERTY PROPERTIES INC which we consider to be strong. Regardless of OLP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, OLP's net profit margin of 23.49% is significantly lower than 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. When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, ONE LIBERTY PROPERTIES INC's return on equity is below that of both the industry average and the S&P 500.

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Apollo Commercial Real Estate Finance

Dividend Yield: 10.80%

Apollo Commercial Real Estate Finance

(NYSE:

ARI

) shares currently have a dividend yield of 10.80%.

Apollo Commercial Real Estate Finance, Inc. The company has a P/E ratio of 9.03.

The average volume for Apollo Commercial Real Estate Finance has been 442,300 shares per day over the past 30 days. Apollo Commercial Real Estate Finance has a market cap of $950.1 million and is part of the real estate industry. Shares are down 0.4% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates

Apollo Commercial Real Estate Finance

as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels, expanding profit margins, good cash flow from operations 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:

  • ARI's very impressive revenue growth greatly exceeded the industry average of 9.7%. Since the same quarter one year prior, revenues leaped by 55.4%. 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.
  • The gross profit margin for APOLLO COMMERCIAL RE FIN INC is currently very high, coming in at 86.82%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 54.64% significantly outperformed against the industry average.
  • Net operating cash flow has increased to $23.08 million or 46.80% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 15.97%.
  • APOLLO COMMERCIAL RE FIN INC's earnings per share declined by 23.5% 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, APOLLO COMMERCIAL RE FIN INC increased its bottom line by earning $1.73 versus $1.26 in the prior year. This year, the market expects an improvement in earnings ($1.85 versus $1.73).

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AllianceBernstein Holding L.P

Dividend Yield: 7.40%

AllianceBernstein Holding L.P

(NYSE:

AB

) shares currently have a dividend yield of 7.40%.

AllianceBernstein Holding L.P. is publicly owned investment manager. The firm also provides research services to its clients. The company has a P/E ratio of 11.84.

The average volume for AllianceBernstein Holding L.P has been 260,600 shares per day over the past 30 days. AllianceBernstein Holding L.P has a market cap of $2.6 billion and is part of the financial services industry. Shares are down 0.5% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates

AllianceBernstein Holding L.P

as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:

  • AB's revenue growth has slightly outpaced the industry average of 6.9%. Since the same quarter one year prior, revenues rose by 12.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • ALLIANCEBERNSTEIN HOLDING LP has improved earnings per share by 9.1% 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 two years. We feel that this trend should continue. During the past fiscal year, ALLIANCEBERNSTEIN HOLDING LP increased its bottom line by earning $1.86 versus $1.72 in the prior year. This year, the market expects an improvement in earnings ($1.97 versus $1.86).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 12.5% when compared to the same quarter one year prior, going from $42.85 million to $48.22 million.
  • Net operating cash flow has increased to $39.46 million or 27.10% when compared to the same quarter last year. In addition, ALLIANCEBERNSTEIN HOLDING LP has also vastly surpassed the industry average cash flow growth rate of -428.75%.
  • The gross profit margin for ALLIANCEBERNSTEIN HOLDING LP is currently very high, coming in at 100.00%. AB has managed to maintain the strong profit margin since the same quarter of last year. Despite the mixed results of the gross profit margin, AB's net profit margin of 88.63% significantly outperformed against the industry.

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