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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."

Chambers Street Properties

Dividend Yield: 7.60%

Chambers Street Properties

(NYSE:

CSG

) shares currently have a dividend yield of 7.60%.

Chambers Street Properties is a equity real estate investment trust. The firm invests in the real estate markets of United States, United Kingdom, and Germany. It focuses on acquiring, owning and operating the properties. The firm invests in industrial and office properties. The company has a P/E ratio of 55.92.

The average volume for Chambers Street Properties has been 1,476,600 shares per day over the past 30 days. Chambers Street Properties has a market cap of $1.6 billion and is part of the real estate industry. Shares are down 16.4% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates

Chambers Street Properties

TheStreet Recommends

as a

hold

. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and weak operating cash flow.

Highlights from the ratings report include:

  • CHAMBERS STREET PROPERTIES reported significant earnings per share improvement 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. This trend suggests that the performance of the business is improving. During the past fiscal year, CHAMBERS STREET PROPERTIES turned its bottom line around by earning $0.08 versus -$0.02 in the prior year. This year, the market expects an improvement in earnings ($0.12 versus $0.08).
  • 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 88.0% when compared to the same quarter one year prior, rising from $5.15 million to $9.69 million.
  • 38.25% is the gross profit margin for CHAMBERS STREET PROPERTIES which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, CSG's net profit margin of 12.82% significantly trails the industry average.
  • Net operating cash flow has declined marginally to $40.93 million or 0.44% 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.
  • CSG has underperformed the S&P 500 Index, declining 14.42% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.

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Washington REIT

Dividend Yield: 4.70%

Washington REIT

(NYSE:

WRE

) shares currently have a dividend yield of 4.70%.

Washington Real Estate Investment Trust is an equity real estate investment trust (REIT). The company engages in the ownership, operation, and development of real properties. The firm invests in real estate markets of the greater Washington D.C. metro region. The company has a P/E ratio of 53.42.

The average volume for Washington REIT has been 380,900 shares per day over the past 30 days. Washington REIT has a market cap of $1.7 billion and is part of the real estate industry. Shares are down 6.8% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates

Washington REIT

as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.8%. Since the same quarter one year prior, revenues slightly increased by 2.7%. 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.
  • WASHINGTON REIT 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, WASHINGTON REIT increased its bottom line by earning $0.06 versus $0.00 in the prior year. This year, the market expects an improvement in earnings ($0.50 versus $0.06).
  • The gross profit margin for WASHINGTON REIT is rather low; currently it is at 21.20%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -3.42% is significantly below that of 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 334.2% when compared to the same quarter one year ago, falling from $1.09 million to -$2.55 million.

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ONEOK

Dividend Yield: 6.60%

ONEOK

(NYSE:

OKE

) shares currently have a dividend yield of 6.60%.

ONEOK, Inc., through its general partner interests in ONEOK Partners, L.P., engages in the gathering, processing, storage, and transportation of natural gas in the United States. The company has a P/E ratio of 26.39.

The average volume for ONEOK has been 2,839,100 shares per day over the past 30 days. ONEOK has a market cap of $7.7 billion and is part of the utilities industry. Shares are down 24% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates

ONEOK

as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, notable return on equity and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, generally higher debt management risk and poor 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 Oil, Gas & Consumable Fuels industry. The net income increased by 24.2% when compared to the same quarter one year prior, going from $61.59 million to $76.51 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, ONEOK INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 34.6%. Since the same quarter one year prior, revenues fell by 30.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • OKE'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 49.36%, 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. 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, OKE is still more expensive than most of the other companies in its industry.
  • The debt-to-equity ratio is very high at 17.05 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.35, which clearly demonstrates the inability to cover short-term cash needs.

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