5 Buy-Rated Dividend Stocks To Check Out: RGR, GOV, GAS, PTR, ORI

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 or Stephanie Link.

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

Sturm Ruger & Company

Dividend Yield: 4.80%

Sturm Ruger & Company (NYSE: RGR) shares currently have a dividend yield of 4.80%.

Sturm, Ruger & Company, Inc. engages in the design, manufacture, and sale of firearms in the United States. The company offers single-shot, auto loading, bolt-action, and sporting rifles; single-action and double-action revolvers; and rim fire auto loading and center fire auto loading pistols. The company has a P/E ratio of 11.45.

The average volume for Sturm Ruger & Company has been 314,600 shares per day over the past 30 days. Sturm Ruger & Company has a market cap of $1.0 billion and is part of the aerospace/defense industry. Shares are up 19% year to date as of the close of trading on Monday.

TheStreet Ratings rates Sturm Ruger & Company as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • RGR's very impressive revenue growth greatly exceeded the industry average of 5.6%. Since the same quarter one year prior, revenues leaped by 50.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • RGR 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 the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.48, which illustrates the ability to avoid short-term cash problems.
  • 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 Leisure Equipment & Products industry and the overall market, STURM RUGER & CO INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • 42.14% is the gross profit margin for STURM RUGER & CO INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 17.99% significantly outperformed against the industry average.
  • Net operating cash flow has significantly increased by 151.75% to $39.43 million when compared to the same quarter last year. In addition, STURM RUGER & CO INC has also vastly surpassed the industry average cash flow growth rate of 18.32%.

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

Government Properties Income

Dividend Yield: 7.20%

Government Properties Income (NYSE: GOV) shares currently have a dividend yield of 7.20%.

Government Properties Income Trust operates as a real estate investment trust (REIT) in the United States. It primarily owns and leases office buildings that are leased mainly to government tenants. The company has a P/E ratio of 22.19.

The average volume for Government Properties Income has been 491,100 shares per day over the past 30 days. Government Properties Income has a market cap of $1.3 billion and is part of the real estate industry. Shares are unchanged year to date as of the close of trading on Monday.

TheStreet Ratings rates Government Properties Income as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations, growth in earnings per share and compelling growth in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • GOV's revenue growth has slightly outpaced the industry average of 10.8%. Since the same quarter one year prior, revenues rose by 14.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Net operating cash flow has increased to $28.84 million or 24.00% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 5.35%.
  • GOVERNMENT PPTYS INCOME TR has improved earnings per share by 12.0% 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, GOVERNMENT PPTYS INCOME TR reported lower earnings of $1.03 versus $1.06 in the prior year. This year, the market expects an improvement in earnings ($1.27 versus $1.03).
  • The company, on the basis of net income growth 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 increased by 27.2% when compared to the same quarter one year prior, rising from $11.95 million to $15.20 million.

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

AGL Resources

Dividend Yield: 4.30%

AGL Resources (NYSE: GAS) shares currently have a dividend yield of 4.30%.

AGL Resources Inc., an energy services holding company, distributes natural gas to residential, commercial, industrial, and governmental customers in Illinois, Georgia, Virginia, New Jersey, Florida, Tennessee, and Maryland. The company has a P/E ratio of 16.67.

The average volume for AGL Resources has been 520,200 shares per day over the past 30 days. AGL Resources has a market cap of $5.2 billion and is part of the utilities industry. Shares are up 10.2% year to date as of the close of trading on Monday.

TheStreet Ratings rates AGL Resources as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 21.0%. Since the same quarter one year prior, revenues rose by 31.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • AGL RESOURCES INC has improved earnings per share by 46.4% 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 year. We feel that this trend should continue. During the past fiscal year, AGL RESOURCES INC increased its bottom line by earning $2.31 versus $2.15 in the prior year. This year, the market expects an improvement in earnings ($2.68 versus $2.31).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Gas Utilities industry. The net income increased by 44.1% when compared to the same quarter one year prior, rising from $34.00 million to $49.00 million.
  • Net operating cash flow has increased to $311.00 million or 16.91% when compared to the same quarter last year. In addition, AGL RESOURCES INC has also modestly surpassed the industry average cash flow growth rate of 13.00%.

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

PetroChina

Dividend Yield: 4.20%

PetroChina (NYSE: PTR) shares currently have a dividend yield of 4.20%.

PetroChina Company Limited produces and sells oil and gas in the People's Republic of China. The company operates in four segments: Exploration and Production, Refining and Chemicals, Marketing, and Natural Gas and Pipeline. The company has a P/E ratio of 178.86.

The average volume for PetroChina has been 185,900 shares per day over the past 30 days. PetroChina has a market cap of $206.2 billion and is part of the energy industry. Shares are down 20.7% year to date as of the close of trading on Monday.

TheStreet Ratings rates PetroChina as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, attractive valuation levels, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 6.5%. Since the same quarter one year prior, revenues rose by 13.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 37.5% when compared to the same quarter one year prior, rising from $3,546.03 million to $4,876.76 million.
  • The current debt-to-equity ratio, 0.50, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.39 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • PETROCHINA CO LTD has improved earnings per share by 37.6% 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, PETROCHINA CO LTD reported lower earnings of $10.11 versus $11.53 in the prior year. This year, the market expects an improvement in earnings ($11.57 versus $10.11).

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

Old Republic International

Dividend Yield: 5.20%

Old Republic International (NYSE: ORI) shares currently have a dividend yield of 5.20%.

Old Republic International Corporation, through its subsidiaries, engages in underwriting insurance products primarily in the United States and Canada. The company has a P/E ratio of 18.74.

The average volume for Old Republic International has been 1,212,800 shares per day over the past 30 days. Old Republic International has a market cap of $3.6 billion and is part of the insurance industry. Shares are up 30.2% year to date as of the close of trading on Monday.

TheStreet Ratings rates Old Republic International as a buy. 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, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 8.0%. Since the same quarter one year prior, revenues rose by 19.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • ORI's debt-to-equity ratio is very low at 0.16 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • Powered by its strong earnings growth of 615.38% and other important driving factors, this stock has surged by 56.93% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, ORI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • OLD REPUBLIC INTL CORP 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 year. We feel that this trend should continue. During the past fiscal year, OLD REPUBLIC INTL CORP continued to lose money by earning -$0.27 versus -$0.55 in the prior year. This year, the market expects an improvement in earnings ($0.70 versus -$0.27).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 672.3% when compared to the same quarter one year prior, rising from -$33.90 million to $194.00 million.

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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