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."

Liberty Property

Dividend Yield: 6.10%

Liberty Property

(NYSE:

LPT

) shares currently have a dividend yield of 6.10%.

Liberty Property Trust is a publicly owned real estate investment holding trust. Through its subsidiary, it provides leasing, property management, development, acquisition, and other tenant-related services for a portfolio of industrial and office properties. The company has a P/E ratio of 19.15.

The average volume for Liberty Property has been 868,900 shares per day over the past 30 days. Liberty Property has a market cap of $4.6 billion and is part of the real estate industry. Shares are down 2% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

Liberty Property

as a

buy

. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, reasonable valuation levels, expanding profit margins and good cash flow from operations. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • LIBERTY PROPERTY TRUST 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. We feel that this trend should continue. During the past fiscal year, LIBERTY PROPERTY TRUST increased its bottom line by earning $1.15 versus $0.70 in the prior year. This year, the market expects an improvement in earnings ($1.31 versus $1.15).
  • 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 165.3% when compared to the same quarter one year prior, rising from $34.42 million to $91.33 million.
  • 44.30% is the gross profit margin for LIBERTY PROPERTY TRUST which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 44.97% significantly outperformed against the industry average.
  • Net operating cash flow has increased to $126.58 million or 22.91% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 9.44%.

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Aircastle

Dividend Yield: 4.80%

Aircastle

(NYSE:

AYR

) shares currently have a dividend yield of 4.80%.

Aircastle Limited acquires, leases, and sells commercial jet aircraft to airlines worldwide. The company also makes investments in various aviation assets, such as debt investments secured by commercial jet aircraft. The company has a P/E ratio of 11.15.

The average volume for Aircastle has been 478,100 shares per day over the past 30 days. Aircastle has a market cap of $1.6 billion and is part of the diversified services industry. Shares are down 5.8% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

Aircastle

as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins, solid stock price performance 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:

  • The revenue growth came in higher than the industry average of 3.0%. Since the same quarter one year prior, revenues rose by 16.2%. 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.
  • Net operating cash flow has slightly increased to $158.86 million or 4.53% when compared to the same quarter last year. In addition, AIRCASTLE LTD has also modestly surpassed the industry average cash flow growth rate of 2.68%.
  • The gross profit margin for AIRCASTLE LTD is currently very high, coming in at 91.87%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -6.87% is in-line with the industry average.
  • After a year of stock price fluctuations, the net result is that AYR'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.
  • AIRCASTLE LTD 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. 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, AIRCASTLE LTD increased its bottom line by earning $1.25 versus $0.47 in the prior year. This year, the market expects an improvement in earnings ($1.57 versus $1.25).

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Cal-Maine Foods

Dividend Yield: 6.40%

Cal-Maine Foods

(NASDAQ:

CALM

) shares currently have a dividend yield of 6.40%.

Cal-Maine Foods, Inc. produces, grades, packages, markets, and distributes shell eggs. It offers specialty shell eggs, such as nutritionally enhanced, cage free, organic, and brown eggs under the Egg-Land's Best, Land O' Lake, Farmhouse, and 4-Grain brand names, as well as under private labels. The company has a P/E ratio of 6.51.

The average volume for Cal-Maine Foods has been 1,008,400 shares per day over the past 30 days. Cal-Maine Foods has a market cap of $2.1 billion and is part of the food & beverage industry. Shares are down 0.5% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

Cal-Maine Foods

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, notable return on equity, attractive valuation levels and expanding profit margins. 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:

  • The revenue growth greatly exceeded the industry average of 2.3%. Since the same quarter one year prior, revenues rose by 44.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • CALM's debt-to-equity ratio is very low at 0.03 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, CALM has a quick ratio of 2.36, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 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 Food Products industry and the overall market, CAL-MAINE FOODS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • 40.78% is the gross profit margin for CAL-MAINE FOODS INC which we consider to be strong. It has increased significantly from the same period last year. Along with this, the net profit margin of 20.00% is above that of the industry average.

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