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 three stocks with substantial yields, that ultimately, we have rated "Sell."

Dynagas LNG Partners

Dividend Yield: 8.5

Dynagas LNG Partners

(NYSE:

DLNG

) shares currently have a dividend yield of 8.5.

Dynagas LNG Partners LP, through its subsidiaries, operates in the seaborne transportation industry worldwide. The company owns and operates liquefied natural gas (LNG) vessels. The company has a P/E ratio of 12.53.

The average volume for Dynagas LNG Partners has been 84100 shares per day over the past 30 days. Dynagas LNG Partners has a market cap of $406 million and is part of the transportation industry. Shares are up 21.1% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates

Dynagas LNG Partners

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • Currently the debt-to-equity ratio of 1.93 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with this, the company manages to maintain a quick ratio of 0.39, which clearly demonstrates the inability to cover short-term cash needs.
  • DLNG has underperformed the S&P 500 Index, declining 10.37% from its price level of one year ago. 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.
  • The gross profit margin for DYNAGAS LNG PARTNERS LP is currently very high, coming in at 82.64%. Regardless of DLNG's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, DLNG's net profit margin of 42.11% significantly outperformed against the industry.
  • Net operating cash flow has significantly increased by 163.85% to $20.61 million when compared to the same quarter last year. In addition, DYNAGAS LNG PARTNERS LP has also vastly surpassed the industry average cash flow growth rate of -13.13%.
  • Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, DYNAGAS LNG PARTNERS LP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

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Arc Logistics Partners

Dividend Yield: 8.4000000000000003552713678800500929355621337890625

Arc Logistics Partners

(NYSE:

ARCX

) shares currently have a dividend yield of 8.4000000000000003552713678800500929355621337890625.

ARC Logistics Partners LP engages in the terminalling, storage, throughput, and transloading of crude oil and petroleum products. The company has a P/E ratio of 392.6.

The average volume for Arc Logistics Partners has been 8500 shares per day over the past 30 days. Arc Logistics Partners has a market cap of $134.8 million and is part of the energy industry. Shares are up 15.1% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates

Arc Logistics Partners

as a

sell

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

Highlights from the ratings report include:

  • The share price of ARC LOGISTICS PARTNERS LP has not done very well: it is down 12.86% 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, 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.
  • 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 Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 1475.1% when compared to the same quarter one year ago, falling from $0.36 million to -$4.96 million.
  • ARC LOGISTICS PARTNERS LP 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, ARC LOGISTICS PARTNERS LP reported lower earnings of $0.06 versus $0.13 in the prior year. This year, the market expects an improvement in earnings ($0.86 versus $0.06).
  • The gross profit margin for ARC LOGISTICS PARTNERS LP is rather high; currently it is at 51.11%. Regardless of ARCX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ARCX's net profit margin of -37.39% significantly underperformed when compared to the industry average.
  • Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, ARC LOGISTICS PARTNERS LP's return on equity significantly trails that of both the industry average and the S&P 500.

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OCI Partners

Dividend Yield: 7.0999999999999996447286321199499070644378662109375

OCI Partners

(NYSE:

OCIP

) shares currently have a dividend yield of 7.0999999999999996447286321199499070644378662109375.

OCI Partners LP produces and sells methanol and ammonia in the United States. The company sells its products to industrial users and commercial traders for further processing or distribution. OCI GP LLC operates as the general partner of the company. The company has a P/E ratio of 12.63.

The average volume for OCI Partners has been 44800 shares per day over the past 30 days. OCI Partners has a market cap of $1.56 billion and is part of the chemicals industry. Shares are up 16.8% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates

OCI Partners

as a

sell

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

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Chemicals industry. The net income has significantly decreased by 37.2% when compared to the same quarter one year ago, falling from $49.22 million to $30.92 million.
  • Net operating cash flow has decreased to $27.38 million or 49.38% 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.
  • The debt-to-equity ratio is very high at 2.08 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, OCIP's quick ratio is somewhat strong at 1.10, demonstrating the ability to handle short-term liquidity needs.
  • The share price of OCI PARTNERS LP has not done very well: it is down 17.98% 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. 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.
  • OCI PARTNERS LP's earnings per share declined by 37.7% in the most recent quarter compared to 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, OCI PARTNERS LP increased its bottom line by earning $1.48 versus $0.91 in the prior year. For the next year, the market is expecting a contraction of 12.2% in earnings ($1.30 versus $1.48).

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