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 "Sell."

Outfront Media

Dividend Yield: 6.60%

Outfront Media

(NYSE:

OUT

) shares currently have a dividend yield of 6.60%.

OUTFRONT Media Inc. provides advertising space on out-of-home advertising structures and sites in the United States, Canada, and Latin America. The company has a P/E ratio of 8.09.

The average volume for Outfront Media has been 791,800 shares per day over the past 30 days. Outfront Media has a market cap of $2.8 billion and is part of the media industry. Shares are down 22.5% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates

Outfront Media

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, unimpressive growth in net income and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • OUTFRONT MEDIA INC's earnings per share declined by 15.8% in the most recent quarter compared to the same quarter a year ago. For the next year, the market is expecting a contraction of 78.2% in earnings ($0.56 versus $2.55).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Real Estate Investment Trusts (REITs) industry average, but is greater than that of the S&P 500. The net income has decreased by 0.9% when compared to the same quarter one year ago, dropping from $22.40 million to $22.20 million.
  • Looking at the price performance of OUT's shares over the past 12 months, there is not much good news to report: the stock is down 26.21%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier 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.
  • 44.11% is the gross profit margin for OUTFRONT MEDIA INC which we consider to be strong. Regardless of OUT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, OUT's net profit margin of 5.77% is significantly lower than the industry average.
  • Net operating cash flow has slightly increased to $68.30 million or 5.89% when compared to the same quarter last year. Despite an increase in cash flow, OUTFRONT MEDIA INC's cash flow growth rate is still lower than the industry average growth rate of 16.13%.

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ARMOUR Residential REIT

Dividend Yield: 20.00%

ARMOUR Residential REIT

(NYSE:

ARR

) shares currently have a dividend yield of 20.00%.

ARMOUR Residential REIT, Inc. invests in and manages a portfolio of residential mortgage backed securities in the United States. The company is managed by ARMOUR Capital Management LP.

The average volume for ARMOUR Residential REIT has been 515,100 shares per day over the past 30 days. ARMOUR Residential REIT has a market cap of $868.2 million and is part of the real estate industry. Shares are down 31.9% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates

ARMOUR Residential REIT

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • Net operating cash flow has significantly decreased to $37.84 million or 57.51% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • ARR'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 35.06%, 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. 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 company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, ARMOUR RESIDENTIAL REIT INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The revenue fell significantly faster than the industry average of 9.7%. Since the same quarter one year prior, revenues fell by 20.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • ARMOUR RESIDENTIAL REIT INC 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, ARMOUR RESIDENTIAL REIT INC reported poor results of -$4.40 versus -$4.24 in the prior year. This year, the market expects an improvement in earnings ($3.56 versus -$4.40).

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WP Glimcher

Dividend Yield: 8.60%

WP Glimcher

(NYSE:

WPG

) shares currently have a dividend yield of 8.60%.

Washington Prime Group Inc. (NYSE:WPG.WI) operates independently of Simon Property Group Inc. as of May 28, 2014. The company has a P/E ratio of 30.61.

The average volume for WP Glimcher has been 1,095,100 shares per day over the past 30 days. WP Glimcher has a market cap of $2.2 billion and is part of the real estate industry. Shares are down 32.3% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates

WP Glimcher

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • WP GLIMCHER INC 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. For the next year, the market is expecting a contraction of 89.1% in earnings ($0.12 versus $1.10).
  • 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 88.7% when compared to the same quarter one year ago, falling from $69.80 million to $7.90 million.
  • The gross profit margin for WP GLIMCHER INC is rather low; currently it is at 20.35%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, WPG's net profit margin of 3.34% is significantly lower than the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 30.93%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 95.55% 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.
  • When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, WP GLIMCHER INC's return on equity is below that of both the industry average and the S&P 500.

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