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."

TICC Capital

Dividend Yield: 16.50%

TICC Capital

(NASDAQ:

TICC

) shares currently have a dividend yield of 16.50%.

TICC Capital Corp., a business development company, operates as a closed-end, non-diversified management investment company. The firm invests in both public and private companies. The company has a P/E ratio of 10.49.

The average volume for TICC Capital has been 314,000 shares per day over the past 30 days. TICC Capital has a market cap of $421.7 million and is part of the financial services industry. Shares are down 6.4% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

TICC Capital

as a

hold

. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share.

Highlights from the ratings report include:

  • Net operating cash flow has significantly increased by 218.27% to $42.55 million when compared to the same quarter last year. In addition, TICC CAPITAL CORP has also vastly surpassed the industry average cash flow growth rate of -422.77%.
  • The gross profit margin for TICC CAPITAL CORP is rather high; currently it is at 66.82%. Regardless of TICC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TICC's net profit margin of 42.20% significantly outperformed against the industry.
  • Compared to its price level of one year ago, TICC is down 23.01% to its most recent closing price of 7.03. Looking ahead, our view is that this company's fundamentals will not have much impact either way, allowing the stock to generally move up or down based on the push and pull of the broad market.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Capital Markets industry average. The net income has decreased by 23.6% when compared to the same quarter one year ago, dropping from $13.14 million to $10.04 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 Capital Markets industry and the overall market, TICC CAPITAL CORP's return on equity significantly trails that of both the industry average and the S&P 500.

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TransMontaigne Partners

Dividend Yield: 9.30%

TransMontaigne Partners

(NYSE:

TLP

) shares currently have a dividend yield of 9.30%.

TransMontaigne Partners L.P. operates as a terminaling and transportation company. The company has a P/E ratio of 16.83.

The average volume for TransMontaigne Partners has been 43,500 shares per day over the past 30 days. TransMontaigne Partners has a market cap of $461.3 million and is part of the energy industry. Shares are down 8.5% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

TransMontaigne Partners

as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

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 12.4% when compared to the same quarter one year prior, going from $10.84 million to $12.19 million.
  • Net operating cash flow has increased to $19.15 million or 22.42% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -19.71%.
  • The debt-to-equity ratio is somewhat low, currently at 0.66, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.99 is somewhat weak and could be cause for future problems.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, TRANSMONTAIGNE PARTNERS LP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • TLP'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 31.54%, 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. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

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Cross Timbers Royalty

Dividend Yield: 7.30%

Cross Timbers Royalty

(NYSE:

CRT

) shares currently have a dividend yield of 7.30%.

Cross Timbers Royalty Trust operates as an express trust in the United States. The company has a P/E ratio of 5.67.

The average volume for Cross Timbers Royalty has been 23,200 shares per day over the past 30 days. Cross Timbers Royalty has a market cap of $93.6 million and is part of the energy industry. Shares are down 10.7% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

Cross Timbers Royalty

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 notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and deteriorating net income.

Highlights from the ratings report include:

  • CRT has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 18.82, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for CROSS TIMBERS ROYALTY TRUST is currently very high, coming in at 100.00%. CRT has managed to maintain the strong profit margin since the same quarter of last year. Despite the mixed results of the gross profit margin, CRT's net profit margin of 93.79% significantly outperformed against the industry.
  • CROSS TIMBERS ROYALTY TRUST 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 not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, CROSS TIMBERS ROYALTY TRUST increased its bottom line by earning $2.67 versus $2.31 in the prior year.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 50.62%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 53.96% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The change in net income from the same quarter one year ago has exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income has significantly decreased by 53.9% when compared to the same quarter one year ago, falling from $3.77 million to $1.74 million.

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