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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."

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 9.64.

The average volume for OCI Resources has been 51,300 shares per day over the past 30 days. OCI Resources has a market cap of $230.1 million and is part of the metals & mining industry. Shares are down 9.3% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates

OCI Resources

TheStreet Recommends

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 solid stock price performance. 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 12.3%. Since the same quarter one year prior, revenues slightly increased by 8.1%. 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 0.86, 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 2.87, which clearly demonstrates the ability to cover short-term cash needs.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to other companies in the Chemicals industry and the overall market on the basis of return on equity, OCI RESOURCES LP has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
  • The gross profit margin for OCI RESOURCES LP is currently lower than what is desirable, coming in at 29.95%. 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, the net profit margin of 9.57% trails the industry average.
  • Net operating cash flow has decreased to $26.80 million or 23.20% 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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Altisource Residential Corporation

Dividend Yield: 14.70%

Altisource Residential Corporation

(NYSE:

RESI

) shares currently have a dividend yield of 14.70%.

Altisource Residential Corporation, through its subsidiary, Altisource Residential, L.P., focuses on acquiring, owning, and managing single-family rental properties in the United States. The company has a P/E ratio of 8.27.

The average volume for Altisource Residential Corporation has been 463,700 shares per day over the past 30 days. Altisource Residential Corporation has a market cap of $856.5 million and is part of the real estate industry. Shares are down 22.7% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates

Altisource Residential Corporation

as a

hold

. Among the primary strengths of the company is its attractive valuation levels, considering its current price compared to earnings, book value and other measures. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:

  • The revenue fell significantly faster than the industry average of 9.8%. Since the same quarter one year prior, revenues fell by 34.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • ALTISOURCE RESIDENTIAL CORP 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. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, ALTISOURCE RESIDENTIAL CORP increased its bottom line by earning $3.33 versus $1.16 in the prior year. For the next year, the market is expecting a contraction of 66.7% in earnings ($1.11 versus $3.33).
  • 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 80.7% when compared to the same quarter one year ago, falling from $67.78 million to $13.09 million.
  • 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. When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, ALTISOURCE RESIDENTIAL CORP's return on equity is below that of both the industry average and the S&P 500.

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CVR Refining

Dividend Yield: 19.10%

CVR Refining

(NYSE:

CVRR

) shares currently have a dividend yield of 19.10%.

CVR Refining, LP operates as an independent petroleum refiner and marketer of transportation fuels in the United States. It owns and operates a complex full coking medium-sour crude oil refinery in Coffeyville, Kansas. The company has a P/E ratio of 16.19.

The average volume for CVR Refining has been 369,200 shares per day over the past 30 days. CVR Refining has a market cap of $3.0 billion and is part of the energy industry. Shares are up 24.1% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates

CVR Refining

as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself.

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 26.6% when compared to the same quarter one year prior, rising from $180.00 million to $227.80 million.
  • The current debt-to-equity ratio, 0.37, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, CVRR has a quick ratio of 1.61, which demonstrates the ability of the company to cover short-term liquidity needs.
  • CVR REFINING LP has improved earnings per share by 26.2% 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, CVR REFINING LP reported lower earnings of $2.44 versus $4.00 in the prior year. This year, the market expects an improvement in earnings ($3.24 versus $2.44).
  • Net operating cash flow has decreased to $160.00 million or 19.67% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, CVR REFINING LP has marginally lower results.
  • 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, CVR REFINING LP's return on equity is below that of both the industry average and the S&P 500.

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