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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer

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."

CSI Compressco

Dividend Yield: 11.40%

CSI Compressco

(NASDAQ:

CCLP

) shares currently have a dividend yield of 11.40%.

CSI Compressco LP provides compression services and equipment for natural gas and oil production, gathering, transportation, processing, and storage applications in the United States, Latin America, Canada, and internationally. The company has a P/E ratio of 22.69.

The average volume for CSI Compressco has been 196,600 shares per day over the past 30 days. CSI Compressco has a market cap of $564.1 million and is part of the energy industry. Shares are up 29.7% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

TheStreet Recommends

CSI Compressco

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 a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.

Highlights from the ratings report include:

  • CCLP's very impressive revenue growth greatly exceeded the industry average of 14.7%. Since the same quarter one year prior, revenues leaped by 284.7%. 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.
  • 36.84% is the gross profit margin for CSI COMPRESSCO LP which we consider to be strong. Regardless of CCLP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 3.49% trails the industry average.
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Energy Equipment & Services industry average, but is less than that of the S&P 500. The net income has significantly decreased by 31.3% when compared to the same quarter one year ago, falling from $6.35 million to $4.36 million.
  • The share price of CSI COMPRESSCO LP has not done very well: it is down 23.14% 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. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
  • CSI COMPRESSCO LP 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. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, CSI COMPRESSCO LP reported lower earnings of $0.66 versus $1.11 in the prior year. For the next year, the market is expecting a contraction of 21.2% in earnings ($0.52 versus $0.66).

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Garrison Capital

Dividend Yield: 9.30%

Garrison Capital

(NASDAQ:

GARS

) shares currently have a dividend yield of 9.30%.

Garrison Capital Inc. is a business development company specializing in investments primarily in the debt and equity of middle market companies. The company has a P/E ratio of 7.97.

The average volume for Garrison Capital has been 48,600 shares per day over the past 30 days. Garrison Capital has a market cap of $251.2 million and is part of the financial services industry. Shares are up 3.7% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

Garrison Capital

as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 9.2%. Since the same quarter one year prior, revenues rose by 38.6%. 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 197.35% to $12.56 million when compared to the same quarter last year. In addition, GARRISON CAPITAL INC has also vastly surpassed the industry average cash flow growth rate of -29.90%.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Capital Markets industry and the overall market, GARRISON CAPITAL INC's return on equity is below that of both the industry average and the S&P 500.
  • 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 decreased by 24.8% when compared to the same quarter one year ago, dropping from $6.75 million to $5.08 million.

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OCI Resources

Dividend Yield: 9.40%

OCI Resources

(NYSE:

OCIR

) shares currently have a dividend yield of 9.40%.

OCI Resources LP engages in the trona ore mining and soda ash production businesses in the United States and internationally. It processes trona ore into soda ash, which is a raw material in flat glass, container glass, detergents, chemicals, paper, and other consumer and industrial products. The company has a P/E ratio of 10.11.

The average volume for OCI Resources has been 30,400 shares per day over the past 30 days. OCI Resources has a market cap of $221.0 million and is part of the metals & mining industry. Shares are down 12.4% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

OCI Resources

as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 4.9%. Since the same quarter one year prior, revenues slightly increased by 7.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.98, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with this, the company maintains a quick ratio of 3.15, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for OCI RESOURCES LP is currently lower than what is desirable, coming in at 32.46%. Regardless of OCIR's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, OCIR's net profit margin of 10.71% compares favorably to the industry average.
  • Net operating cash flow has decreased to $19.40 million or 32.87% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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