10 High-Yields We're Not Buying

NEW YORK (TheStreet) -- The dividend yield of the S&P 500 is 2.15%, less than half of the index's historical average, but still greater than the 10-year U.S. Treasury note.

These are difficult times for income investors.

While plenty of high-yield opportunities exist, investors must always consider the safety of their dividend and the total return potential of their investment ( Radio Shack ( RSH) and Supervalu ( SVU) are two stocks that recently suspended dividends and suffered 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.

The following pages contain our analysis of 10 stocks with spectacular yields, that ultimately, we have rated "Sell."

TWO Free Cash Flow Chart TWO Free Cash Flow data by YCharts

Two Harbors Investment Corp

Growth -- 3.5 out of 5 stars

Measures the growth of both the company's income statement and cash flow. On this factor, Two Harbors ( TWO) has a growth score better than 60% of the stocks we rate.

Total Return -- 3.0 out of 5 stars

Measures the historical price movement of the stock. The stock performance of this company has beaten 50% of the companies we cover.

Efficiency -- 3.0 out of 5 stars

Measures the strength and historic growth of a company's return on invested capital. The company has generated more income per dollar of capital than 50% of the companies we review.

Price Volatility -- 4.0 out of 5 stars

Measures the volatility of the company's stock price historically. The stock is less volatile than 70% of the stocks we monitor.

Solvency -- 0.5 out of 5 stars

Measures the solvency of the company based on several ratios. The company is less solvent than nearly all of the companies we analyze.

Income -- 5.0 out of 5 stars

Measures dividend yield and payouts to shareholders. The company's dividend is higher than 90% of the companies we track.

ARR Free Cash Flow Chart ARR Free Cash Flow data by YCharts

ARMOUR Residential REIT

Growth -- 4.0 out of 5 stars

Measures the growth of both the company's income statement and cash flow. On this factor, Armour Residential ( ARR) has a growth score better than 70% of the stocks we rate.

Total Return -- 3.0 out of 5 stars

Measures the historical price movement of the stock. The stock performance of this company has beaten 50% of the companies we cover.

Efficiency -- 1.5 out of 5 stars

Measures the strength and historic growth of a company's return on invested capital. The company has generated more income per dollar of capital than 20% of the companies we review.

Price Volatility -- 2.5 out of 5 stars

Measures the volatility of the company's stock price historically. The stock is less volatile than 40% of the stocks we monitor.

Solvency -- 0.5 out of 5 stars

Measures the solvency of the company based on several ratios. The company is less solvent than nearly all of the companies we analyze.

Income -- 5.0 out of 5 stars

Measures dividend yield and payouts to shareholders. The company's dividend is higher than 90% of the companies we track.

NAT Free Cash Flow Chart NAT Free Cash Flow data by YCharts

Nordic American Tankers

Growth -- 0.5 out of 5 stars

Measures the growth of both the company's income statement and cash flow. On this factor, Nordic American Tankers ( NAT) has a growth score better than virtually none of the stocks we rate

Total Return -- 1.0 out of 5 stars

Measures the historical price movement of the stock. The stock performance of this company has beaten 10% of the companies we cover.

Efficiency -- 1.0 out of 5 stars

Measures the strength and historic growth of a company's return on invested capital. The company has generated more income per dollar of capital than 10% of the companies we review.

Price Volatility -- 1.0 out of 5 stars

Measures the volatility of the company's stock price historically. The stock is less volatile than 10% of the stocks we monitor.

Solvency -- 1.5 out of 5 stars

Measures the solvency of the company based on several ratios. The company is more solvent than 20% of the companies we analyze.

Income -- 5.0 out of 5 stars

Measures dividend yield and payouts to shareholders. The company's dividend is higher than 90% of the companies we track.

NKA Free Cash Flow Chart NKA Free Cash Flow data by YCharts

Niska Gas Storage Partners

Growth -- 0.5 out of 5 stars

Measures the growth of both the company's income statement and cash flow. On this factor, Niska Gas Storage Partners ( NKA) has a growth score better than virtually none of the stocks we rate

Total Return -- 1.5 out of 5 stars

Measures the historical price movement of the stock. The stock performance of this company has beaten 20% of the companies we cover.

Efficiency -- 1.0 out of 5 stars

Measures the strength and historic growth of a company's return on invested capital. The company has generated more income per dollar of capital than 10% of the companies we review.

Price Volatility -- 3.0 out of 5 stars

Measures the volatility of the company's stock price historically. The stock is less volatile than 50% of the stocks we monitor.

Solvency -- 0.5 out of 5 stars

Measures the solvency of the company based on several ratios. The company is less solvent than nearly all of the companies we analyze.

Income -- 5.0 out of 5 stars

Measures dividend yield and payouts to shareholders. The company's dividend is higher than 90% of the companies we track.

EFC Free Cash Flow Chart EFC Free Cash Flow data by YCharts

Ellington Financial

Growth -- 3.5 out of 5 stars

Measures the growth of both the company's income statement and cash flow. On this factor, Ellington Financial ( EFC)has a growth score better than 60% of the stocks we rate.

Total Return -- 2.0 out of 5 stars

Measures the historical price movement of the stock. The stock performance of this company has beaten 30% of the companies we cover.

Efficiency -- 2.5 out of 5 stars

Measures the strength and historic growth of a company's return on invested capital. The company has generated more income per dollar of capital than 40% of the companies we review.

Price Volatility -- 4.0 out of 5 stars

Measures the volatility of the company's stock price historically. The stock is less volatile than 70% of the stocks we monitor.

Solvency -- 0.5 out of 5 stars

Measures the solvency of the company based on several ratios. The company is less solvent than nearly all of the companies we analyze.

Income -- 5.0 out of 5 stars

Measures dividend yield and payouts to shareholders. The company's dividend is higher than 90% of the companies we track.

TNP Free Cash Flow Chart TNP Free Cash Flow data by YCharts

Tsakos Energy Navigation

Growth -- 0.5 out of 5 stars

Measures the growth of both the company's income statement and cash flow. On this factor, Tsakos Energy Navigation ( TNP) has a growth score better than virtually none of the stocks we rate

Total Return -- 0.5 out of 5 stars

Measures the historical price movement of the stock. The stock performance of this company ranks at the bottom of the companies we cover.

Efficiency -- 1.5 out of 5 stars

Measures the strength and historic growth of a company's return on invested capital. The company has generated more income per dollar of capital than 20% of the companies we review.

Price Volatility -- 1.5 out of 5 stars

Measures the volatility of the company's stock price historically. The stock is less volatile than 20% of the stocks we monitor.

Solvency -- 0.5 out of 5 stars

Measures the solvency of the company based on several ratios. The company is less solvent than nearly all of the companies we analyze.

Income -- 5.0 out of 5 stars

Measures dividend yield and payouts to shareholders. The company's dividend is higher than 90% of the companies we track.

TNK Free Cash Flow Chart TNK Free Cash Flow data by YCharts

Teekay Tankers

Growth -- 0.5 out of 5 stars

Measures the growth of both the company's income statement and cash flow. On this factor, Teekay Tankers ( TNK) has a growth score better than virtually none of the stocks we rate

Total Return -- 0.5 out of 5 stars

Measures the historical price movement of the stock. The stock performance of this company ranks at the bottom of the companies we cover.

Efficiency -- 1.5 out of 5 stars

Measures the strength and historic growth of a company's return on invested capital. The company has generated more income per dollar of capital than 20% of the companies we review.

Price Volatility -- 1.0 out of 5 stars

Measures the volatility of the company's stock price historically. The stock is less volatile than 10% of the stocks we monitor.

Solvency -- 0.5 out of 5 stars

Measures the solvency of the company based on several ratios. The company is less solvent than nearly all of the companies we analyze.

Income -- 5.0 out of 5 stars

Measures dividend yield and payouts to shareholders. The company's dividend is higher than 90% of the companies we track.

RNO Free Cash Flow Chart RNO Free Cash Flow data by YCharts

Rhino Resource Partners

Growth -- 4.5 out of 5 stars

Measures the growth of both the company's income statement and cash flow. On this factor, Rhino Resource Partners ( RNO) has a growth score better than 80% of the stocks we rate.

Total Return -- 0.5 out of 5 stars

Measures the historical price movement of the stock. The stock performance of this company ranks at the bottom of the companies we cover.

Efficiency -- 3.0 out of 5 stars

Measures the strength and historic growth of a company's return on invested capital. The company has generated more income per dollar of capital than 50% of the companies we review.

Price Volatility -- 1.0 out of 5 stars

Measures the volatility of the company's stock price historically. The stock is less volatile than 10% of the stocks we monitor.

Solvency -- 3.5 out of 5 stars

Measures the solvency of the company based on several ratios. The company is more solvent than 60% of the companies we analyze.

Income -- 5.0 out of 5 stars

Measures dividend yield and payouts to shareholders. The company's dividend is higher than 90% of the companies we track.

DCIX Free Cash Flow Chart DCIX Free Cash Flow data by YCharts

Diana Containerships

Growth -- 5.0 out of 5 stars

Measures the growth of both the company's income statement and cash flow. On this factor, Diana Containerships ( DCIX) has a growth score better than 90% of the stocks we rate.

Total Return -- 0.5 out of 5 stars

Measures the historical price movement of the stock. The stock performance of this company ranks at the bottom of the companies we cover.

Efficiency -- 2.0 out of 5 stars

Measures the strength and historic growth of a company's return on invested capital. The company has generated more income per dollar of capital than 30% of the companies we review.

Price Volatility -- 1.0 out of 5 stars

Measures the volatility of the company's stock price historically. The stock is less volatile than 10% of the stocks we monitor.

Solvency -- 4.0 out of 5 stars

Measures the solvency of the company based on several ratios. The company is more solvent than 70% of the companies we analyze.

Income -- 5.0 out of 5 stars

Measures dividend yield and payouts to shareholders. The company's dividend is higher than 90% of the companies we track.

TEU Free Cash Flow Chart TEU Free Cash Flow data by YCharts

Box Ships

Growth -- 3.5 out of 5 stars

Measures the growth of both the company's income statement and cash flow. On this factor, Box Ships ( TEU) has a growth score better than 60% of the stocks we rate.

Total Return -- 0.5 out of 5 stars Measures the historical price movement of the stock. The stock performance of this company ranks at the bottom of the companies we cover.

Efficiency -- 2.5 out of 5 stars

Measures the strength and historic growth of a company's return on invested capital. The company has generated more income per dollar of capital than 40% of the companies we review.

Price Volatility -- 0.5 out of 5 stars

Measures the volatility of the company's stock price historically. The stock is more volatile than nearly all of the stocks we monitor.

Solvency -- 0.5 out of 5 stars

Measures the solvency of the company based on several ratios. The company is less solvent than nearly all of the companies we analyze.

Income -- 5.0 out of 5 stars

Measures dividend yield and payouts to shareholders. The company's dividend is higher than 90% of the companies we track.

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