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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."

Western Refining

Dividend Yield: 4.10%

Western Refining

(NYSE:

WNR

) shares currently have a dividend yield of 4.10%.

Western Refining, Inc. operates as an independent crude oil refiner and marketer of refined products. The company operates in four segments: Refining, NTI, WNRL, and Retail. The company has a P/E ratio of 6.86.

The average volume for Western Refining has been 1,493,000 shares per day over the past 30 days. Western Refining has a market cap of $3.5 billion and is part of the energy industry. Shares are down 5.5% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates

Western Refining

TheStreet Recommends

as a

buy

. The company's strengths can be seen in multiple areas, such as its notable return on equity, attractive valuation levels, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, WESTERN REFINING INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly increased by 73.23% to $373.62 million when compared to the same quarter last year. In addition, WESTERN REFINING INC has also vastly surpassed the industry average cash flow growth rate of -26.85%.
  • After a year of stock price fluctuations, the net result is that WNR'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.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 36.8%. Since the same quarter one year prior, revenues fell by 36.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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Ryman Hospitality Properties

Dividend Yield: 5.20%

Ryman Hospitality Properties

(NYSE:

RHP

) shares currently have a dividend yield of 5.20%.

Ryman Hospitality Properties, Inc. owns and operates hotels in the United States. The company has a P/E ratio of 20.45.

The average volume for Ryman Hospitality Properties has been 239,600 shares per day over the past 30 days. Ryman Hospitality Properties has a market cap of $2.7 billion and is part of the real estate industry. Shares are up 0.1% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates

Ryman Hospitality Properties

as a

buy

. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, notable return on equity, good cash flow from operations and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 76.4% when compared to the same quarter one year prior, rising from $15.13 million to $26.69 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 6.1%. Since the same quarter one year prior, revenues slightly increased by 2.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 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. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, RYMAN HOSPITALITY PPTYS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to $75.36 million or 15.04% when compared to the same quarter last year. In addition, RYMAN HOSPITALITY PPTYS INC has also modestly surpassed the industry average cash flow growth rate of 9.44%.
  • RYMAN HOSPITALITY PPTYS INC reported significant earnings per share improvement 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, RYMAN HOSPITALITY PPTYS INC increased its bottom line by earning $2.16 versus $1.77 in the prior year. For the next year, the market is expecting a contraction of 4.6% in earnings ($2.06 versus $2.16).

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Six Flags Entertainment

Dividend Yield: 4.20%

Six Flags Entertainment

(NYSE:

SIX

) shares currently have a dividend yield of 4.20%.

Six Flags Entertainment Corporation owns and operates regional theme and water parks. Its parks offer various thrill rides, water attractions, themed areas, concerts and shows, restaurants, game venues, and retail outlets. The company has a P/E ratio of 45.15.

The average volume for Six Flags Entertainment has been 751,300 shares per day over the past 30 days. Six Flags Entertainment has a market cap of $5.0 billion and is part of the leisure industry. Shares are up 27.4% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates

Six Flags Entertainment

as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, increase in net income, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:

  • SIX's revenue growth has slightly outpaced the industry average of 1.2%. Since the same quarter one year prior, revenues slightly increased by 6.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 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. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, SIX FLAGS ENTERTAINMENT CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 49.8% when compared to the same quarter one year prior, rising from $105.03 million to $157.30 million.
  • Net operating cash flow has increased to $240.52 million or 13.48% when compared to the same quarter last year. In addition, SIX FLAGS ENTERTAINMENT CORP has also modestly surpassed the industry average cash flow growth rate of 3.61%.
  • The gross profit margin for SIX FLAGS ENTERTAINMENT CORP is rather high; currently it is at 65.89%. Regardless of SIX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SIX's net profit margin of 27.34% significantly outperformed against the industry.

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