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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."

Tallgrass Energy Partners

Dividend Yield: 6.20%

Tallgrass Energy Partners

(NYSE:

TEP

) shares currently have a dividend yield of 6.20%.

Tallgrass Energy Partners, LP acquires, owns, develops, and operates various midstream energy assets in North America. The company operates through three segments: Crude Oil Transportation & Logistics, Natural Gas Transportation & Logistics, and Processing & Logistics. The company has a P/E ratio of 25.61.

The average volume for Tallgrass Energy Partners has been 403,800 shares per day over the past 30 days. Tallgrass Energy Partners has a market cap of $3.3 billion and is part of the energy industry. Shares are up 13.8% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates

Tallgrass Energy Partners

TheStreet Recommends

as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and compelling growth in net income. 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 greatly exceeded the industry average of 24.5%. Since the same quarter one year prior, revenues rose by 26.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the 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. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, TALLGRASS ENERGY PRT LP's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • The gross profit margin for TALLGRASS ENERGY PRT LP is rather high; currently it is at 56.86%. It has increased significantly from the same period last year. Along with this, the net profit margin of 30.30% significantly outperformed against the industry average.
  • Net operating cash flow has significantly increased by 82.48% to $88.76 million when compared to the same quarter last year. In addition, TALLGRASS ENERGY PRT LP has also vastly surpassed the industry average cash flow growth rate of -48.72%.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 36.4% when compared to the same quarter one year prior, rising from $32.32 million to $44.07 million.

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Ryman Hospitality Properties

Dividend Yield: 5.90%

Ryman Hospitality Properties

(NYSE:

RHP

) shares currently have a dividend yield of 5.90%.

Ryman Hospitality Properties, Inc. owns and operates hotels in the United States. The company has a P/E ratio of 19.61.

The average volume for Ryman Hospitality Properties has been 240,500 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 1.2% 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, 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 481.3% when compared to the same quarter one year prior, rising from $4.53 million to $26.35 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 11.9%. Since the same quarter one year prior, revenues slightly increased by 3.1%. Growth in the company's revenue appears to have helped boost the 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 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 significantly increased by 1275.85% to $53.27 million when compared to the same quarter last year. In addition, RYMAN HOSPITALITY PPTYS INC has also vastly surpassed the industry average cash flow growth rate of 11.94%.
  • RYMAN HOSPITALITY PPTYS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, RYMAN HOSPITALITY PPTYS INC's EPS of $2.16 remained unchanged from the prior years' EPS of $2.16. This year, the market expects an improvement in earnings ($2.82 versus $2.16).

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EPR Properties

Dividend Yield: 5.20%

EPR Properties

(NYSE:

EPR

) shares currently have a dividend yield of 5.20%.

EPR Properties is a real estate investment trust. It invests in the real estate markets of United States and Canada. The firm develops, owns, leases and finances properties in select market segments primarily related to entertainment, education and recreation. The company has a P/E ratio of 23.78.

The average volume for EPR Properties has been 388,000 shares per day over the past 30 days. EPR Properties has a market cap of $4.7 billion and is part of the real estate industry. Shares are up 27.6% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates

EPR Properties

as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, compelling growth in net income and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:

  • EPR's revenue growth has slightly outpaced the industry average of 11.9%. Since the same quarter one year prior, revenues rose by 19.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. 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.
  • EPR PROPERTIES has improved earnings per share by 20.3% 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 year. We feel that this trend should continue. During the past fiscal year, EPR PROPERTIES increased its bottom line by earning $2.93 versus $2.78 in the prior year. This year, the market expects an improvement in earnings ($3.03 versus $2.93).
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Real Estate Investment Trusts (REITs) industry average. The net income increased by 26.5% when compared to the same quarter one year prior, rising from $42.82 million to $54.18 million.
  • Net operating cash flow has increased to $69.08 million or 20.09% when compared to the same quarter last year. In addition, EPR PROPERTIES has also modestly surpassed the industry average cash flow growth rate of 11.94%.

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