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."

TriplePoint Venture Growth BDC

Dividend Yield: 13.30%

TriplePoint Venture Growth BDC

(NYSE:

TPVG

) shares currently have a dividend yield of 13.30%.

TriplePoint Venture Growth BDC Corp is a business development company specializing investments in growth stage. It also provides debt financing to venture growth space companies which includes growth capital loans, equipment financings, revolving loans, and direct equity investments. The company has a P/E ratio of 6.94.

The average volume for TriplePoint Venture Growth BDC has been 74,700 shares per day over the past 30 days. TriplePoint Venture Growth BDC has a market cap of $176.9 million and is part of the financial services industry. Shares are down 8.5% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

TriplePoint Venture Growth BDC

as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth 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 23.7%. Since the same quarter one year prior, revenues rose by 12.9%. 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 TRIPLEPOINT VENTURE GWTH BDC is currently very high, coming in at 76.92%. 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 -65.50% is in-line with the industry average.
  • TRIPLEPOINT VENTURE GWTH BDC 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 year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, TRIPLEPOINT VENTURE GWTH BDC reported lower earnings of $1.04 versus $1.24 in the prior year. This year, the market expects an improvement in earnings ($1.49 versus $1.04).
  • Net operating cash flow has significantly decreased to -$19.21 million or 1451.93% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The share price of TRIPLEPOINT VENTURE GWTH BDC has not done very well: it is down 19.68% 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, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.

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Transocean Partners

Dividend Yield: 12.00%

Transocean Partners

(NYSE:

RIGP

) shares currently have a dividend yield of 12.00%.

Transocean Partners LLC, together with its subsidiaries, operates as an offshore drilling contractor in the United States Gulf of Mexico. The company acquires, owns, and operates offshore drilling rigs. The company has a P/E ratio of 7.72.

The average volume for Transocean Partners has been 144,300 shares per day over the past 30 days. Transocean Partners has a market cap of $824.8 million and is part of the energy industry. Shares are up 40.4% year-to-date as of the close of trading on Friday.

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TheStreet Recommends

TheStreet Ratings rates

Transocean Partners

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 expanding profit margins. 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 revenue growth greatly exceeded the industry average of 35.8%. Since the same quarter one year prior, revenues slightly increased by 2.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • RIGP 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 4.03, which clearly demonstrates the ability to cover short-term cash needs.
  • TRANSOCEAN PARTNERS LLC reported significant earnings per share improvement 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, TRANSOCEAN PARTNERS LLC swung to a loss, reporting -$1.03 versus $1.25 in the prior year. This year, the market expects an improvement in earnings ($1.92 versus -$1.03).
  • Net operating cash flow has decreased to $78.00 million or 35.53% when compared to the same quarter last year. Despite a decrease in cash flow of 35.53%, TRANSOCEAN PARTNERS LLC is in line with the industry average cash flow growth rate of -36.37%.
  • 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 Energy Equipment & Services industry and the overall market on the basis of return on equity, TRANSOCEAN PARTNERS LLC underperformed against that of the industry average and is significantly less than that of the S&P 500.

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Investors Real Estate

Dividend Yield: 8.50%

Investors Real Estate

(NYSE:

IRET

) shares currently have a dividend yield of 8.50%.

Investors Real Estate Trust is a real estate investment trust. The trust invests in real estate markets of United States. It is primarily engaged in investment and operation of the the real estate assets. The company has a P/E ratio of 76.62.

The average volume for Investors Real Estate has been 524,000 shares per day over the past 30 days. Investors Real Estate has a market cap of $742.3 million and is part of the real estate industry. Shares are down 9.5% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

Investors Real Estate

as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and increase in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 11.9%. Since the same quarter one year prior, revenues slightly increased by 7.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • INVESTORS REAL ESTATE TRUST has improved earnings per share by 20.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, INVESTORS REAL ESTATE TRUST increased its bottom line by earning $0.08 versus $0.04 in the prior year. For the next year, the market is expecting a contraction of 87.5% in earnings ($0.01 versus $0.08).
  • Net operating cash flow has decreased to $19.55 million or 41.46% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • IRET has underperformed the S&P 500 Index, declining 15.57% from its price level of one year ago. 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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