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."

AG Mortgage Investment

Dividend Yield: 14.10%

AG Mortgage Investment

(NYSE:

MITT

) shares currently have a dividend yield of 14.10%.

AG Mortgage Investment Trust, Inc., a real estate investment trust, focuses on investing, acquiring, and managing a portfolio of mortgage assets, other real estate-related securities, and financial assets. It invests in residential mortgage-backed securities (RMBS), for which a U.S. The company has a P/E ratio of 24.47.

The average volume for AG Mortgage Investment has been 252,200 shares per day over the past 30 days. AG Mortgage Investment has a market cap of $382.4 million and is part of the real estate industry. Shares are down 26.7% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates

AG Mortgage Investment

as a

hold

. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • The gross profit margin for AG MORTGAGE INVESTMENT TRUST is currently very high, coming in at 78.64%. Regardless of MITT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MITT's net profit margin of -0.98% significantly underperformed when compared to 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 101.3% when compared to the same quarter one year ago, falling from $22.39 million to -$0.30 million.
  • 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 Real Estate Investment Trusts (REITs) industry and the overall market, AG MORTGAGE INVESTMENT TRUST's return on equity significantly trails that of both the industry average and the S&P 500.

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Ferrellgas Partners

Dividend Yield: 12.50%

Ferrellgas Partners

(NYSE:

FGP

) shares currently have a dividend yield of 12.50%.

Ferrellgas Partners, L.P. distributes and sells propane and related equipment and supplies primarily in the United States. The company transports propane to propane distribution locations, tanks on customers' premises, or to portable propane tanks delivered to retailers.

The average volume for Ferrellgas Partners has been 385,200 shares per day over the past 30 days. Ferrellgas Partners has a market cap of $1.6 billion and is part of the energy industry. Shares are down 22% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates

TheStreet Recommends

Ferrellgas Partners

as a

hold

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

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 8.9%. Since the same quarter one year prior, revenues slightly increased by 6.3%. 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.
  • Compared to other companies in the Gas Utilities industry and the overall market, FERRELLGAS PARTNERS -LP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for FERRELLGAS PARTNERS -LP is currently extremely low, coming in at 13.81%. Regardless of FGP's low profit margin, it has managed to increase from the same period last year.
  • The debt-to-equity ratio is very high at 21.19 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 0.44, which clearly demonstrates the inability to cover short-term cash needs.

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Calumet Specialty Products Partners

Dividend Yield: 14.50%

Calumet Specialty Products Partners

(NASDAQ:

CLMT

) shares currently have a dividend yield of 14.50%.

Calumet Specialty Products Partners, L.P. produces and sells specialty hydrocarbon products in North America. It operates in three segments: Specialty Products, Fuel Products, and Oilfield Services.

The average volume for Calumet Specialty Products Partners has been 375,900 shares per day over the past 30 days. Calumet Specialty Products Partners has a market cap of $1.4 billion and is part of the energy industry. Shares are down 11.4% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates

Calumet Specialty Products Partners

as a

hold

. Among the primary strengths of the company is its generally strong cash flow from operations. At the same time, however, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

Highlights from the ratings report include:

  • Net operating cash flow has increased to $136.10 million or 11.01% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -26.70%.
  • 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 32.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • CALUMET SPECIALTY PRODS -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. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, CALUMET SPECIALTY PRODS -LP reported poor results of -$1.80 versus -$0.10 in the prior year. This year, the market expects an improvement in earnings (-$0.27 versus -$1.80).
  • The debt-to-equity ratio is very high at 2.26 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, CLMT has a quick ratio of 0.52, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CALUMET SPECIALTY PRODS -LP's return on equity significantly trails that of both the industry average and the S&P 500.

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