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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."

OCI Resources

Dividend Yield: 8.80%

OCI Resources

(NYSE:

OCIR

) shares currently have a dividend yield of 8.80%.

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 10.97.

The average volume for OCI Resources has been 32,100 shares per day over the past 30 days. OCI Resources has a market cap of $239.8 million and is part of the metals & mining industry. Shares are down 4.8% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

TheStreet Recommends

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 10.4%. 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, the net profit margin of 10.71% trails 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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THL Credit

Dividend Yield: 11.00%

THL Credit

(NASDAQ:

TCRD

) shares currently have a dividend yield of 11.00%.

THL Credit, Inc. is a business development company specializing in direct and fund of fund investments. The fund seeks to invest in debt and equity securities of middle market companies. The company has a P/E ratio of 9.80.

The average volume for THL Credit has been 188,000 shares per day over the past 30 days. THL Credit has a market cap of $418.7 million and is part of the financial services industry. Shares are up 4.5% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

THL Credit

as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity 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 4.6%. Since the same quarter one year prior, revenues rose by 30.5%. 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.
  • The gross profit margin for THL CREDIT INC is rather high; currently it is at 64.64%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 19.53% trails the industry average.
  • Net operating cash flow has increased to -$54.38 million or 18.79% when compared to the same quarter last year. Despite an increase in cash flow, THL CREDIT INC's cash flow growth rate is still lower than the industry average growth rate of 55.98%.
  • The share price of THL CREDIT INC has not done very well: it is down 10.84% 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. 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.
  • 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 Capital Markets industry. The net income has significantly decreased by 55.9% when compared to the same quarter one year ago, falling from $10.69 million to $4.72 million.

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CVR Partners

Dividend Yield: 11.80%

CVR Partners

(NYSE:

UAN

) shares currently have a dividend yield of 11.80%.

CVR Partners, LP produces, distributes, and markets nitrogen fertilizer products in North America. It provides ammonia products for industrial and agricultural customers; and urea ammonium nitrate (UAN) products for agricultural customers. The company has a P/E ratio of 13.31.

The average volume for CVR Partners has been 223,800 shares per day over the past 30 days. CVR Partners has a market cap of $1.0 billion and is part of the chemicals industry. Shares are up 41% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

CVR Partners

as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • The current debt-to-equity ratio, 0.30, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, UAN has a quick ratio of 2.23, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for CVR PARTNERS LP is rather high; currently it is at 50.11%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 33.39% significantly outperformed against the industry average.
  • UAN, with its decline in revenue, slightly underperformed the industry average of 10.4%. Since the same quarter one year prior, revenues fell by 11.7%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Chemicals industry and the overall market on the basis of return on equity, CVR PARTNERS LP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • CVR PARTNERS LP's earnings per share declined by 10.5% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, CVR PARTNERS LP reported lower earnings of $1.03 versus $1.62 in the prior year. For the next year, the market is expecting a contraction of 18.4% in earnings ($0.84 versus $1.03).

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