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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."

CSI Compressco

Dividend Yield: 15.80%

CSI Compressco

(NASDAQ:

CCLP

) shares currently have a dividend yield of 15.80%.

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 average volume for CSI Compressco has been 105,600 shares per day over the past 30 days. CSI Compressco has a market cap of $419.4 million and is part of the energy industry. Shares are down 3.7% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates

CSI Compressco

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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, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

Highlights from the ratings report include:

  • CCLP's very impressive revenue growth greatly exceeded the industry average of 22.4%. Since the same quarter one year prior, revenues leaped by 293.9%. 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 317.64% to $19.72 million when compared to the same quarter last year. In addition, CSI COMPRESSCO LP has also vastly surpassed the industry average cash flow growth rate of -14.07%.
  • Even though the current debt-to-equity ratio is 1.11, it is still below the industry average, suggesting that this level of debt is acceptable within the Energy Equipment & Services industry. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.71 is weak.
  • 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 $0.61 versus $1.11 in the prior year. For the next year, the market is expecting a contraction of 82.0% in earnings ($0.11 versus $0.61).
  • 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 Energy Equipment & Services industry. The net income has significantly decreased by 76.2% when compared to the same quarter one year ago, falling from $4.88 million to $1.16 million.

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TransMontaigne Partners

Dividend Yield: 9.30%

TransMontaigne Partners

(NYSE:

TLP

) shares currently have a dividend yield of 9.30%.

TransMontaigne Partners L.P. operates as a terminaling and transportation company. The company has a P/E ratio of 16.83.

The average volume for TransMontaigne Partners has been 44,100 shares per day over the past 30 days. TransMontaigne Partners has a market cap of $461.3 million and is part of the energy industry. Shares are down 9.2% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates

TransMontaigne Partners

as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, good cash flow from operations 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 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 12.4% when compared to the same quarter one year prior, going from $10.84 million to $12.19 million.
  • Net operating cash flow has increased to $19.15 million or 22.42% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -19.81%.
  • The debt-to-equity ratio is somewhat low, currently at 0.66, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.99 is somewhat weak and could be cause for future problems.
  • 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. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, TRANSMONTAIGNE PARTNERS LP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • TLP's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 25.84%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. 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.

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Blue Capital Reinsurance Holdings

Dividend Yield: 7.20%

Blue Capital Reinsurance Holdings

(NYSE:

BCRH

) shares currently have a dividend yield of 7.20%.

Blue Capital Reinsurance Holdings Ltd., through its subsidiaries, provides collateralized reinsurance in the property catastrophe market. The company was founded in 2013 and is headquartered in Pembroke, Bermuda. The company has a P/E ratio of 7.77.

The average volume for Blue Capital Reinsurance Holdings has been 16,000 shares per day over the past 30 days. Blue Capital Reinsurance Holdings has a market cap of $145.5 million and is part of the insurance industry. Shares are down 4.6% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates

Blue Capital Reinsurance Holdings

as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity 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:

  • BCRH's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • Compared to other companies in the Insurance industry and the overall market on the basis of return on equity, BLUE CAP REINSURANCE has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • BCRH, with its decline in revenue, slightly underperformed the industry average of 12.6%. Since the same quarter one year prior, revenues fell by 13.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • BCRH is off 6.14% from its price level of one year ago, reflecting the general market trend and ignoring their higher earnings per share compared to the year-earlier quarter. 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.

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