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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 "Hold."

America First Multifamily Investors

Dividend Yield: 9.00%

America First Multifamily Investors

(NASDAQ:

ATAX

) shares currently have a dividend yield of 9.00%.

America First Multifamily Investors, L.P. acquires, holds, sells, and deals in a portfolio of mortgage revenue bonds that have been issued to provide construction or permanent financing for multifamily and student housing, and commercial properties. The company has a P/E ratio of 16.29.

The average volume for America First Multifamily Investors has been 120,000 shares per day over the past 30 days. America First Multifamily Investors has a market cap of $333.8 million and is part of the real estate industry. Shares are up 9.7% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates

America First Multifamily Investors

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TheStreet Recommends

as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income and expanding profit margins. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 9.7%. Since the same quarter one year prior, revenues rose by 19.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Thrifts & Mortgage Finance industry average. The net income increased by 0.3% when compared to the same quarter one year prior, going from $2.52 million to $2.53 million.
  • Net operating cash flow has increased to $4.87 million or 16.63% when compared to the same quarter last year. Despite an increase in cash flow of 16.63%, AMERICA FIRST MULTIFAMILY-LP is still growing at a significantly lower rate than the industry average of 138.46%.
  • After a year of stock price fluctuations, the net result is that ATAX'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 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 could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • 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. When compared to other companies in the Thrifts & Mortgage Finance industry and the overall market, AMERICA FIRST MULTIFAMILY-LP's return on equity is below that of both the industry average and the S&P 500.

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Calamos Asset Management

Dividend Yield: 8.50%

Calamos Asset Management

(NASDAQ:

CLMS

) shares currently have a dividend yield of 8.50%.

Calamos Asset Management Inc. is a publicly owned investment manager. The firm provides investment advisory services to individuals including high net worth individuals, and institutions. It also manages accounts for family offices and private foundations. The company has a P/E ratio of 70.30.

The average volume for Calamos Asset Management has been 93,900 shares per day over the past 30 days. Calamos Asset Management has a market cap of $144.3 million and is part of the financial services industry. Shares are down 24.9% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates

Calamos Asset Management

as a

hold

. Among the primary strengths of the company is its generally strong cash flow from operations. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:

  • Net operating cash flow has increased to -$13.21 million or 23.80% when compared to the same quarter last year. In addition, CALAMOS ASSET MANAGEMENT INC has also vastly surpassed the industry average cash flow growth rate of -204.07%.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 24.4%. Since the same quarter one year prior, revenues fell by 15.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • CALAMOS ASSET MANAGEMENT INC 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. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, CALAMOS ASSET MANAGEMENT INC reported lower earnings of $0.19 versus $0.71 in the prior year. This year, the market expects an improvement in earnings ($0.23 versus $0.19).
  • The gross profit margin for CALAMOS ASSET MANAGEMENT INC is currently lower than what is desirable, coming in at 34.05%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -2.72% is significantly below that of the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 42.57%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 900.00% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, CLMS is still more expensive than most of the other companies in its industry.

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Arbor Realty

Dividend Yield: 8.80%

Arbor Realty

(NYSE:

ABR

) shares currently have a dividend yield of 8.80%.

Arbor Realty Trust, Inc., a real estate finance company, invests in a diversified portfolio of structured finance assets in the multifamily and commercial real estate markets. The company has a P/E ratio of 10.97.

The average volume for Arbor Realty has been 83,500 shares per day over the past 30 days. Arbor Realty has a market cap of $349.4 million and is part of the real estate industry. Shares are down 4.3% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates

Arbor Realty

as a

hold

. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:

  • Net operating cash flow has significantly increased by 68.92% to $3.84 million when compared to the same quarter last year. In addition, ARBOR REALTY TRUST INC has also vastly surpassed the industry average cash flow growth rate of 11.58%.
  • 45.76% is the gross profit margin for ARBOR REALTY TRUST INC which we consider to be strong. Regardless of ABR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ABR's net profit margin of 9.12% is significantly lower than the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income has significantly decreased by 82.1% when compared to the same quarter one year ago, falling from $16.90 million to $3.02 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, ARBOR REALTY TRUST INC's return on equity is below that of both the industry average and the S&P 500.

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