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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."

NGL Energy Partners

Dividend Yield: 13.10%

NGL Energy Partners

(NYSE:

NGL

) shares currently have a dividend yield of 13.10%.

NGL Energy Partners LP, through its subsidiaries, engages in the crude oil logistics, water solutions, liquids, retail propane, and refined products and renewables businesses in the United States.

The average volume for NGL Energy Partners has been 457,300 shares per day over the past 30 days. NGL Energy Partners has a market cap of $2.1 billion and is part of the energy industry. Shares are down 32.8% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates

NGL Energy Partners

as a

hold

. The company's strengths can be seen in multiple areas, such as its good cash flow from operations 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 a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • Net operating cash flow has significantly increased by 788.86% to $81.83 million when compared to the same quarter last year. In addition, NGL ENERGY PARTNERS LP has also vastly surpassed the industry average cash flow growth rate of -19.60%.
  • NGL ENERGY PARTNERS LP has improved earnings per share by 9.7% 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, NGL ENERGY PARTNERS LP swung to a loss, reporting -$0.44 versus $0.32 in the prior year. This year, the market expects an improvement in earnings ($0.68 versus -$0.44).
  • Despite the weak revenue results, NGL has significantly outperformed against the industry average of 34.5%. Since the same quarter one year prior, revenues slightly dropped by 3.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The debt-to-equity ratio of 1.47 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, NGL maintains a poor quick ratio of 0.89, which illustrates the inability to avoid short-term cash problems.
  • 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, NGL ENERGY PARTNERS LP's return on equity significantly trails that of both the industry average and the S&P 500.

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BRASILAGRO - CIA Bras de Prop Agricolas

Dividend Yield: 10.70%

BRASILAGRO - CIA Bras de Prop Agricolas

(NYSE:

LND

) shares currently have a dividend yield of 10.70%.

Brasilagro Companhia Brasileira de Propriedades Agricolas, together with its subsidiaries, engages in agriculture, cattle raising, and forestry activities in Brazil. The company operates through three segments: Grains, Sugarcane, and Real Estate.

The average volume for BRASILAGRO - CIA Bras de Prop Agricolas has been 1,400 shares per day over the past 30 days. BRASILAGRO - CIA Bras de Prop Agricolas has a market cap of $194.5 million and is part of the food & beverage industry. Shares are up 16.2% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates

BRASILAGRO - CIA Bras de Prop Agricolas

as a

hold

. The company's strengths can be seen in multiple areas, such as its robust 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 a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • LND's very impressive revenue growth greatly exceeded the industry average of 9.0%. Since the same quarter one year prior, revenues leaped by 158.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • LND's debt-to-equity ratio is very low at 0.15 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, LND has a quick ratio of 2.02, which demonstrates the ability of the company to cover short-term liquidity needs.
  • LND has underperformed the S&P 500 Index, declining 6.61% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • Net operating cash flow has decreased to $11.57 million or 33.18% 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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USA Compression Partners

Dividend Yield: 11.90%

USA Compression Partners

(NYSE:

USAC

) shares currently have a dividend yield of 11.90%.

USA Compression Partners, LP provides natural gas compression services under term contracts with customers in the oil and gas industry in the United States. It engineers, designs, operates, services, and repairs its compression units and maintains related support inventory and equipment. The company has a P/E ratio of 88.25.

The average volume for USA Compression Partners has been 196,700 shares per day over the past 30 days. USA Compression Partners has a market cap of $578.4 million and is part of the energy industry. Shares are up 6.6% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates

USA Compression Partners

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 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 disappointing return on equity.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 29.5%. Since the same quarter one year prior, revenues rose by 24.6%. 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 57.57% to $34.04 million when compared to the same quarter last year. In addition, USA COMPRESSION PRTNRS LP has also vastly surpassed the industry average cash flow growth rate of -14.13%.
  • The debt-to-equity ratio is somewhat low, currently at 0.92, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.44 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • 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 Energy Equipment & Services industry and the overall market, USA COMPRESSION PRTNRS LP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The share price of USA COMPRESSION PRTNRS LP has not done very well: it is down 10.46% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. 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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