4 Buy-Rated Dividend Stocks: COP, OKS, WPZ, WRI

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 and 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 4 stocks with substantial yields, that ultimately, we have rated "Buy."

ConocoPhillips

Dividend Yield: 4.40%

ConocoPhillips (NYSE: COP) shares currently have a dividend yield of 4.40%.

ConocoPhillips explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids on a worldwide basis. The company has a P/E ratio of 10.19

The average volume for ConocoPhillips has been 6,485,100 shares per day over the past 30 days ConocoPhillips has a market cap of $73.2 billion and is part of the energy industry Shares are up 4% year to date as of the close of trading on Wednesday

TheStreet Ratings rates ConocoPhillips as a buy. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, expanding profit margins, good cash flow from operations, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • 40.60% is the gross profit margin for CONOCOPHILLIPS which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 15.09% is above that of the industry average.
  • Net operating cash flow has increased to $4,730.00 million or 13.10% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -25.51%.
  • 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. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, CONOCOPHILLIPS has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

ONEOK Partners L.P

Dividend Yield: 6.00%

ONEOK Partners L.P (NYSE: OKS) shares currently have a dividend yield of 6.00%.

ONEOK Partners, L.P. engages in the gathering, processing, storage, and transportation of natural gas in the United States. It operates in three segments: Natural Gas Gathering and Processing, Natural Gas Pipelines, and Natural Gas Liquids. The company has a P/E ratio of 18.75

The average volume for ONEOK Partners L.P has been 527,600 shares per day over the past 30 days ONEOK Partners L.P has a market cap of $7.0 billion and is part of the energy industry Shares are down 8.9% year to date as of the close of trading on Wednesday

TheStreet Ratings rates ONEOK Partners L.P as a buy. Among the primary strengths of the company is its reasonable valuation levels, considering its current price compared to earnings, book value and other measures. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from the ratings report include:
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 10.7%. Since the same quarter one year prior, revenues slightly dropped by 3.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The share price of ONEOK PARTNERS -LP has not done very well: it is down 11.75% 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, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, ONEOK PARTNERS -LP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • Net operating cash flow has decreased to $181.44 million or 17.21% when compared to the same quarter last year. Despite a decrease in cash flow of 17.21%, ONEOK PARTNERS -LP is in line with the industry average cash flow growth rate of -25.51%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

Williams Partners

Dividend Yield: 6.90%

Williams Partners (NYSE: WPZ) shares currently have a dividend yield of 6.90%.

Williams Partners L.P., an energy infrastructure company, focuses on connecting North America's hydrocarbon resource plays to growing markets for natural gas and natural gas liquids (NGL). It operates in two segments, Gas Pipeline and Midstream Gas & Liquids. The company has a P/E ratio of 31.86

The average volume for Williams Partners has been 879,900 shares per day over the past 30 days Williams Partners has a market cap of $20.3 billion and is part of the chemicals industry Shares are up 3.6% year to date as of the close of trading on Wednesday

TheStreet Ratings rates Williams Partners as a buy. Among the primary strengths of the company is its expanding profit margins over time. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • 40.60% is the gross profit margin for WILLIAMS PARTNERS LP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 18.28% is above that of the industry average.
  • WPZ, with its decline in revenue, slightly underperformed the industry average of 10.7%. Since the same quarter one year prior, revenues fell by 10.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • WPZ's debt-to-equity ratio of 0.87 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.49 is very low and demonstrates very weak liquidity.
  • Net operating cash flow has declined marginally to $511.00 million or 0.38% when compared to the same quarter last year. Despite a decrease in cash flow WILLIAMS PARTNERS LP is still fairing well by exceeding its industry average cash flow growth rate of -25.51%.
  • 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. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, WILLIAMS PARTNERS LP's return on equity is significantly below that of the industry average and is below that of the S&P 500.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

Weingarten Realty Investors

Dividend Yield: 4.10%

Weingarten Realty Investors (NYSE: WRI) shares currently have a dividend yield of 4.10%.

Weingarten Realty Investors operates as a real estate investment trust (REIT). The company engages in the management, acquisition, and development of real estate. It operates in two segments, Shopping Center and Industrial. The company has a P/E ratio of 60.31

The average volume for Weingarten Realty Investors has been 919,700 shares per day over the past 30 days Weingarten Realty Investors has a market cap of $3.6 billion and is part of the real estate industry Shares are up 12.6% year to date as of the close of trading on Wednesday

TheStreet Ratings rates Weingarten Realty Investors as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • WEINGARTEN REALTY INVST reported significant earnings per share improvement 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. We feel that this trend should continue. During the past fiscal year, WEINGARTEN REALTY INVST turned its bottom line around by earning $0.25 versus -$0.33 in the prior year. This year, the market expects an improvement in earnings ($0.52 versus $0.25).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 104.5% when compared to the same quarter one year prior, rising from $21.20 million to $43.35 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 12.1%. Since the same quarter one year prior, revenues rose by 10.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 37.00% is the gross profit margin for WEINGARTEN REALTY INVST which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 31.38% is above that of the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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