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."

Hospitality Properties

Dividend Yield: 7.60%

Hospitality Properties

(NYSE:

HPT

) shares currently have a dividend yield of 7.60%.

Hospitality Properties Trust, a real estate investment trust (REIT), engages in buying, owning, and leasing hotels. The company has a P/E ratio of 18.76.

The average volume for Hospitality Properties has been 981,400 shares per day over the past 30 days. Hospitality Properties has a market cap of $4.0 billion and is part of the real estate industry. Shares are down 17.4% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates

Hospitality Properties

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, reasonable valuation levels and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • HPT's revenue growth has slightly outpaced the industry average of 9.7%. Since the same quarter one year prior, revenues rose by 12.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • HOSPITALITY PROPERTIES 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, HOSPITALITY PROPERTIES TRUST increased its bottom line by earning $1.18 versus $0.73 in the prior year. This year, the market expects an improvement in earnings ($1.67 versus $1.18).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Real Estate Investment Trusts (REITs) industry average. The net income increased by 54.2% when compared to the same quarter one year prior, rising from $53.92 million to $83.15 million.
  • Net operating cash flow has increased to $156.00 million or 13.01% when compared to the same quarter last year. Despite an increase in cash flow, HOSPITALITY PROPERTIES TRUST's average is still marginally south of the industry average growth rate of 16.11%.

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Ryman Hospitality Properties

Dividend Yield: 5.50%

Ryman Hospitality Properties

(NYSE:

RHP

) shares currently have a dividend yield of 5.50%.

Ryman Hospitality Properties, Inc. owns and operates hotels in the United States. The company has a P/E ratio of 21.79.

The average volume for Ryman Hospitality Properties has been 274,700 shares per day over the past 30 days. Ryman Hospitality Properties has a market cap of $2.6 billion and is part of the real estate industry. Shares are down 4.5% year-to-date as of the close of trading on Thursday.

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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, solid stock price performance and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Real Estate Investment Trusts (REITs) industry average. The net income increased by 47.9% when compared to the same quarter one year prior, rising from $27.99 million to $41.39 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.7%. Since the same quarter one year prior, revenues slightly increased by 6.3%. 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.
  • 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 increased to $71.74 million or 15.93% when compared to the same quarter last year. Despite an increase in cash flow, RYMAN HOSPITALITY PPTYS INC's average is still marginally south of the industry average growth rate of 16.11%.

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Advanced Semiconductor Engineering

Dividend Yield: 5.90%

Advanced Semiconductor Engineering

(NYSE:

ASX

) shares currently have a dividend yield of 5.90%.

Advanced Semiconductor Engineering, Inc. provides semiconductor packaging and testing services in the United States, Taiwan, Asia, Europe, and internationally. It operates through Packaging, Testing, and Electronic Manufacturing Services (EMS) segments. The company has a P/E ratio of 15.76.

The average volume for Advanced Semiconductor Engineering has been 1,730,400 shares per day over the past 30 days. Advanced Semiconductor Engineering has a market cap of $8.2 billion and is part of the electronics industry. Shares are down 16.5% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates

Advanced Semiconductor Engineering

as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, reasonable valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. 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 11.5%. Since the same quarter one year prior, revenues rose by 15.2%. 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 Semiconductors & Semiconductor Equipment industry. The net income increased by 26.3% when compared to the same quarter one year prior, rising from $113.29 million to $143.06 million.
  • Net operating cash flow has increased to $513.00 million or 18.62% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -22.76%.
  • The debt-to-equity ratio is somewhat low, currently at 0.63, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.97 is somewhat weak and could be cause for future problems.

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