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."

Energy Transfer Equity

Dividend Yield: 14.10%

Energy Transfer Equity

(NYSE:

ETE

) shares currently have a dividend yield of 14.10%.

Energy Transfer Equity, L.P., through its subsidiaries, provides diversified energy-related services in the Unites States. The company has a P/E ratio of 8.79.

The average volume for Energy Transfer Equity has been 18,526,500 shares per day over the past 30 days. Energy Transfer Equity has a market cap of $8.5 billion and is part of the energy industry. Shares are down 27.5% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates

Energy Transfer Equity

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 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 and poor profit margins.

Highlights from the ratings report include:

  • ENERGY TRANSFER EQUITY LP 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 two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, ENERGY TRANSFER EQUITY LP increased its bottom line by earning $0.52 versus $0.15 in the prior year. This year, the market expects an improvement in earnings ($1.09 versus $0.52).
  • 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 55.9% when compared to the same quarter one year prior, rising from $188.00 million to $293.00 million.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 36.9%. Since the same quarter one year prior, revenues fell by 31.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The gross profit margin for ENERGY TRANSFER EQUITY LP is currently extremely low, coming in at 13.53%. Regardless of ETE's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, ETE's net profit margin of 2.98% compares favorably to the industry average.
  • ETE'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 59.22%, 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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Williams Companies

Dividend Yield: 18.80%

Williams Companies

(NYSE:

WMB

) shares currently have a dividend yield of 18.80%.

The Williams Companies, Inc. operates as an energy infrastructure company primarily in the United States. The company operates in three segments: Williams Partners, Access Midstream, and Williams NGL & Petchem Services.

The average volume for Williams Companies has been 12,251,900 shares per day over the past 30 days. Williams Companies has a market cap of $10.2 billion and is part of the energy industry. Shares are down 28.8% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates

TheStreet Recommends

Williams Companies

as a

hold

. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and generally higher debt management risk.

Highlights from the ratings report include:

  • Net operating cash flow has significantly increased by 74.78% to $603.00 million when compared to the same quarter last year. In addition, WILLIAMS COS INC has also vastly surpassed the industry average cash flow growth rate of -26.82%.
  • The gross profit margin for WILLIAMS COS INC is rather high; currently it is at 53.92%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -2.22% trails the industry average.
  • Despite the weak revenue results, WMB has outperformed against the industry average of 36.9%. Since the same quarter one year prior, revenues fell by 13.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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 Oil, Gas & Consumable Fuels industry and the overall market, WILLIAMS COS INC's return on equity is below that of both the industry average and 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 51.64%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 102.25% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.

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Brandywine Realty

Dividend Yield: 4.70%

Brandywine Realty

(NYSE:

BDN

) shares currently have a dividend yield of 4.70%.

Brandywine Realty Trust is a publically owned real estate investment trust. The firm invests in real estate markets of the United States. It makes investments in office, mixed-use, and industrial properties. The company has a P/E ratio of 98.08.

The average volume for Brandywine Realty has been 1,768,200 shares per day over the past 30 days. Brandywine Realty has a market cap of $2.2 billion and is part of the real estate industry. Shares are down 7% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates

Brandywine Realty

as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth 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 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 Real Estate Investment Trusts (REITs) industry. The net income increased by 129.6% when compared to the same quarter one year prior, rising from $8.77 million to $20.15 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 6.1%. Since the same quarter one year prior, revenues slightly increased by 3.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • BRANDYWINE REALTY TRUST reported significant earnings per share improvement in the most recent quarter compared to 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, BRANDYWINE REALTY TRUST swung to a loss, reporting -$0.01 versus $0.20 in the prior year. This year, the market expects an improvement in earnings ($0.18 versus -$0.01).
  • The gross profit margin for BRANDYWINE REALTY TRUST is rather low; currently it is at 22.88%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 13.28% significantly trails the industry average.
  • BDN has underperformed the S&P 500 Index, declining 17.53% 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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