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."

Cedar Fair

Dividend Yield: 5.80%

Cedar Fair

(NYSE:

FUN

) shares currently have a dividend yield of 5.80%.

Cedar Fair, L.P. owns and operates amusement and water parks, and hotels in the United States and Canada. The company operates approximately 11 amusement parks, 3 outdoor water parks, 1 indoor water park, and 5 hotels. The company has a P/E ratio of 28.52.

The average volume for Cedar Fair has been 256,700 shares per day over the past 30 days. Cedar Fair has a market cap of $3.2 billion and is part of the leisure industry. Shares are up 2.7% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates

Cedar Fair

as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, solid stock price performance and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 12.9%. Since the same quarter one year prior, revenues slightly increased by 3.8%. 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 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, CEDAR FAIR -LP's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Compared to where it was trading a year ago, FUN's share price has not changed very much due to (a) the relatively weak year-over-year performance of the overall market, (b) the company's stagnant earnings, and (c) other mixed results. 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.
  • CEDAR FAIR -LP's earnings per share declined by 43.8% 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, CEDAR FAIR -LP increased its bottom line by earning $1.98 versus $1.86 in the prior year. This year, the market expects an improvement in earnings ($3.41 versus $1.98).
  • 35.56% is the gross profit margin for CEDAR FAIR -LP which we consider to be strong. Regardless of FUN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, FUN's net profit margin of -15.38% significantly underperformed when compared to the industry average.

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AbbVie

Dividend Yield: 4.10%

AbbVie

(NYSE:

ABBV

) shares currently have a dividend yield of 4.10%.

AbbVie Inc. discovers, develops, manufactures, and sells pharmaceutical products worldwide. The company has a P/E ratio of 17.66.

The average volume for AbbVie has been 9,415,400 shares per day over the past 30 days. AbbVie has a market cap of $89.1 billion and is part of the drugs industry. Shares are down 7% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates

AbbVie

as a

buy

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

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 6.8%. Since the same quarter one year prior, revenues rose by 17.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • ABBVIE 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. We feel that this trend should continue. During the past fiscal year, ABBVIE INC increased its bottom line by earning $3.12 versus $1.09 in the prior year. This year, the market expects an improvement in earnings ($5.04 versus $3.12).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Biotechnology industry. The net income increased by 287.3% when compared to the same quarter one year prior, rising from -$810.00 million to $1,517.00 million.
  • The gross profit margin for ABBVIE INC is currently very high, coming in at 78.34%. Regardless of ABBV's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ABBV's net profit margin of 23.70% is significantly lower than the industry average.
  • ABBV is off 7.92% from its price level of one year ago, reflecting the general market trend and ignoring their higher earnings per share 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 is one of the factors that makes this stock an attractive investment.

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Chesapeake Lodging

Dividend Yield: 6.10%

Chesapeake Lodging

(NYSE:

CHSP

) shares currently have a dividend yield of 6.10%.

Chesapeake Lodging Trust is a self-advised real estate investment trust organized in the state of Maryland in June 2009. The company focuses on investments primarily in upper-upscale hotels in major business and convention markets and premium select-service hotels in urban settings or unique locations in the United States. The company has a P/E ratio of 26.36.

The average volume for Chesapeake Lodging has been 476,300 shares per day over the past 30 days. Chesapeake Lodging has a market cap of $1.6 billion and is part of the real estate industry. Shares are up 3.1% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates

Chesapeake Lodging

as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, reasonable valuation levels, good cash flow from operations and growth in earnings per share. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 6.9%. Since the same quarter one year prior, revenues rose by 18.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • 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 66.7% when compared to the same quarter one year prior, rising from $8.84 million to $14.73 million.
  • Net operating cash flow has increased to $43.08 million or 26.91% when compared to the same quarter last year. In addition, CHESAPEAKE LODGING TRUST has also vastly surpassed the industry average cash flow growth rate of -68.87%.
  • CHESAPEAKE LODGING TRUST reported significant earnings per share improvement 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, CHESAPEAKE LODGING TRUST reported lower earnings of $0.97 versus $1.01 in the prior year. This year, the market expects an improvement in earnings ($1.30 versus $0.97).

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