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."

Fifth Street Senior Floating Rate

Dividend Yield: 11.20%

Fifth Street Senior Floating Rate

(NASDAQ:

FSFR

) shares currently have a dividend yield of 11.20%.

Fifth Street Senior Floating Rate Corp. was incorporated in 2013 and is based in White Plains, New York. The company has a P/E ratio of 10.78.

The average volume for Fifth Street Senior Floating Rate has been 145,100 shares per day over the past 30 days. Fifth Street Senior Floating Rate has a market cap of $314.4 million and is part of the financial services industry. Shares are up 6.7% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates

Fifth Street Senior Floating Rate

as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share and compelling growth in net income. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

Highlights from the ratings report include:

  • FSFR's very impressive revenue growth greatly exceeded the industry average of 9.3%. Since the same quarter one year prior, revenues leaped by 587.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • FIFTH STREET SR FLTG RATE CP has improved earnings per share by 5.5% in the most recent quarter compared to the same quarter a year ago. This year, the market expects an improvement in earnings ($1.25 versus $0.97).
  • FSFR'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 26.92%, 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.
  • Compared to other companies in the Capital Markets industry and the overall market on the basis of return on equity, FIFTH STREET SR FLTG RATE CP underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • Net operating cash flow has significantly decreased to -$272.24 million or 218.63% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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Rentech Nitrogen Partners

Dividend Yield: 7.90%

Rentech Nitrogen Partners

(NYSE:

RNF

) shares currently have a dividend yield of 7.90%.

Rentech Nitrogen Partners, L.P. produces and sells nitrogen fertilizer products in the United States and internationally. It operates through two segments, East Dubuque and Pasadena.

The average volume for Rentech Nitrogen Partners has been 109,200 shares per day over the past 30 days. Rentech Nitrogen Partners has a market cap of $592.3 million and is part of the chemicals industry. Shares are up 46% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates

Rentech Nitrogen Partners

as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 5.7%. Since the same quarter one year prior, revenues rose by 47.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Chemicals industry. The net income increased by 145.1% when compared to the same quarter one year prior, rising from -$17.41 million to $7.84 million.
  • RENTECH NITROGEN PARTNERS LP 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, RENTECH NITROGEN PARTNERS LP swung to a loss, reporting -$0.03 versus $0.10 in the prior year. This year, the market expects an improvement in earnings ($1.46 versus -$0.03).
  • 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. Compared to other companies in the Chemicals industry and the overall market, RENTECH NITROGEN PARTNERS LP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$13.28 million or 95.76% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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OCI Resources

Dividend Yield: 9.30%

OCI Resources

(NYSE:

OCIR

) shares currently have a dividend yield of 9.30%.

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 10.22.

The average volume for OCI Resources has been 33,000 shares per day over the past 30 days. OCI Resources has a market cap of $223.4 million and is part of the metals & mining industry. Shares are down 11.3% year-to-date as of the close of trading on Thursday.

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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 5.7%. 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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