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: 10.30%

America First Multifamily Investors

(NASDAQ:

ATAX

) shares currently have a dividend yield of 10.30%.

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 and/or permanent financing for multifamily and student housing, and commercial properties. The company has a P/E ratio of 21.13.

The average volume for America First Multifamily Investors has been 176,500 shares per day over the past 30 days. America First Multifamily Investors has a market cap of $292.8 million and is part of the real estate industry. Shares are down 3% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates

America First Multifamily Investors

as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 15.2%. Since the same quarter one year prior, revenues rose by 27.5%. 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 gross profit margin for AMERICA FIRST MULTIFAMILY-LP is currently very high, coming in at 79.17%. Regardless of ATAX's high profit margin, it has managed to decrease from the same period last year.
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Thrifts & Mortgage Finance industry average, but is less than that of the S&P 500. The net income has decreased by 23.2% when compared to the same quarter one year ago, dropping from $3.31 million to $2.54 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness 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.
  • Net operating cash flow has decreased to $3.22 million or 27.88% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, AMERICA FIRST MULTIFAMILY-LP has marginally lower results.

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Calamos Asset Management

Dividend Yield: 7.10%

Calamos Asset Management

(NASDAQ:

CLMS

) shares currently have a dividend yield of 7.10%.

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 47.17.

The average volume for Calamos Asset Management has been 119,100 shares per day over the past 30 days. Calamos Asset Management has a market cap of $174.3 million and is part of the financial services industry. Shares are down 12.6% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates

TheStreet Recommends

Calamos Asset Management

as a

hold

. Among the primary strengths of the company is its expanding profit margins over time. 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:

  • CLMS, with its decline in revenue, slightly underperformed the industry average of 4.3%. Since the same quarter one year prior, revenues slightly dropped by 8.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 41.71% is the gross profit margin for CALAMOS ASSET MANAGEMENT INC which we consider to be strong. Regardless of CLMS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CLMS's net profit margin of 1.49% is significantly lower than the industry average.
  • 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 ($0.34 versus $0.19).
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Capital Markets industry and the overall market on the basis of return on equity, CALAMOS ASSET MANAGEMENT INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 34.82%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 80.00% 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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WhiteHorse Finance

Dividend Yield: 15.10%

WhiteHorse Finance

(NASDAQ:

WHF

) shares currently have a dividend yield of 15.10%.

Whitehorse Finance, LLC is a business development company. The company has a P/E ratio of 6.34.

The average volume for WhiteHorse Finance has been 35,200 shares per day over the past 30 days. WhiteHorse Finance has a market cap of $140.5 million and is part of the financial services industry. Shares are down 17.9% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates

WhiteHorse Finance

as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 4.3%. Since the same quarter one year prior, revenues rose by 26.4%. 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 gross profit margin for WHITEHORSE FINANCE INC is rather high; currently it is at 62.49%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 12.19% trails the industry average.
  • WHITEHORSE FINANCE 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. 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, WHITEHORSE FINANCE INC increased its bottom line by earning $1.32 versus $1.26 in the prior year. This year, the market expects an improvement in earnings ($1.47 versus $1.32).
  • The share price of WHITEHORSE FINANCE INC has not done very well: it is down 22.62% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • 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 Capital Markets industry. The net income has significantly decreased by 68.7% when compared to the same quarter one year ago, falling from $4.56 million to $1.43 million.

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