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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."

Newtek Business Services

Dividend Yield: 11.00%

Newtek Business Services

(NASDAQ:

NEWT

) shares currently have a dividend yield of 11.00%.

Newtek Business Services Corp. is a business development company specializing in providing financial and business services to the small-and medium-sized business market in the United States. The firm also seeks to invest in early stage businesses.

The average volume for Newtek Business Services has been 86,900 shares per day over the past 30 days. Newtek Business Services has a market cap of $183.8 million and is part of the diversified services industry. Shares are down 9.5% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

Newtek Business Services

TheStreet Recommends

as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations 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:

  • The revenue growth greatly exceeded the industry average of 13.7%. Since the same quarter one year prior, revenues rose by 43.0%. 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.
  • 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 Capital Markets industry and the overall market, NEWTEK BUSINESS SERVICES CP's return on equity exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly increased by 184.28% to $8.79 million when compared to the same quarter last year. In addition, NEWTEK BUSINESS SERVICES CP has also vastly surpassed the industry average cash flow growth rate of 100.83%.
  • The gross profit margin for NEWTEK BUSINESS SERVICES CP is currently extremely low, coming in at 2.18%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, NEWT's net profit margin of 82.48% significantly outperformed against the industry.
  • NEWTEK BUSINESS SERVICES CP 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. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, NEWTEK BUSINESS SERVICES CP increased its bottom line by earning $3.23 versus $0.59 in the prior year. For the next year, the market is expecting a contraction of 48.6% in earnings ($1.66 versus $3.23).

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AllianceBernstein

Dividend Yield: 8.30%

AllianceBernstein

(NYSE:

AB

) shares currently have a dividend yield of 8.30%.

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 10.68.

The average volume for AllianceBernstein has been 204,100 shares per day over the past 30 days. AllianceBernstein has a market cap of $2.4 billion and is part of the financial services industry. Shares are up 2.4% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

AllianceBernstein

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, expanding profit margins and growth in earnings per share. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 13.7%. Since the same quarter one year prior, revenues rose by 18.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 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. Compared to other companies in the Capital Markets industry and the overall market, ALLIANCEBERNSTEIN HOLDING LP's return on equity exceeds that of both the industry average and the S&P 500.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Capital Markets industry average. The net income increased by 21.9% when compared to the same quarter one year prior, going from $45.59 million to $55.55 million.
  • 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 90.86% significantly outperformed against the industry.
  • ALLIANCEBERNSTEIN HOLDING LP has improved earnings per share by 24.4% 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, ALLIANCEBERNSTEIN HOLDING LP increased its bottom line by earning $1.89 versus $1.86 in the prior year. For the next year, the market is expecting a contraction of 4.2% in earnings ($1.81 versus $1.89).

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CorEnergy Infrastructure

Dividend Yield: 10.00%

CorEnergy Infrastructure

(NYSE:

CORR

) shares currently have a dividend yield of 10.00%.

CorEnergy Infrastructure Trust, Inc. is an open-ended equity trust launched and managed by Corridor InfraTrust Management, LLC. The trust primarily owns midstream and downstream U.S. energy infrastructure assets subject to long-term triple net participating leases with energy companies. The company has a P/E ratio of 47.54.

The average volume for CorEnergy Infrastructure has been 151,500 shares per day over the past 30 days. CorEnergy Infrastructure has a market cap of $357.3 million and is part of the real estate industry. Shares are up 100% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

CorEnergy Infrastructure

as a

buy

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

  • CORR's very impressive revenue growth greatly exceeded the industry average of 12.1%. Since the same quarter one year prior, revenues leaped by 55.3%. 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 significantly increased by 171.24% to $16.71 million when compared to the same quarter last year. In addition, CORENERGY INFRASTRUCTURE TR has also vastly surpassed the industry average cash flow growth rate of 9.08%.
  • The gross profit margin for CORENERGY INFRASTRUCTURE TR is currently very high, coming in at 74.27%. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, CORR's net profit margin of 14.98% significantly trails the industry average.
  • CORENERGY INFRASTRUCTURE TR's earnings per share declined by 42.9% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, CORENERGY INFRASTRUCTURE TR reported lower earnings of $0.82 versus $1.15 in the prior year. This year, the market expects an improvement in earnings ($2.07 versus $0.82).

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