5 Hold-Rated Dividend Stocks To Check Out: CPWR, RRD, POT, VALE, WRI

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 "Hold."

Compuware Corporation

Dividend Yield: 4.60%

Compuware Corporation (NASDAQ: CPWR) shares currently have a dividend yield of 4.60%.

Covisint is the sub possibley of interest for SI in Jan 2013 bid to take Compuware private GS contact: Scott Johnson heads up acquisitions Scott.johnson@compuware.com.

The average volume for Compuware Corporation has been 1,920,900 shares per day over the past 30 days. Compuware Corporation has a market cap of $2.3 billion and is part of the computer software & services industry. Shares are up 0% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Compuware Corporation as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 6.8%. Since the same quarter one year prior, revenues slightly increased by 0.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • Net operating cash flow has significantly increased by 58.06% to $28.65 million when compared to the same quarter last year. In addition, COMPUWARE CORP has also vastly surpassed the industry average cash flow growth rate of -15.06%.
  • CPWR's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.85 is somewhat weak and could be cause for future problems.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Software industry average. The net income has decreased by 4.8% when compared to the same quarter one year ago, dropping from $10.47 million to $9.97 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Software industry and the overall market, COMPUWARE CORP's return on equity significantly trails that of both the industry average and 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.

R.R. Donnelley & Sons Company

Dividend Yield: 6.40%

R.R. Donnelley & Sons Company (NASDAQ: RRD) shares currently have a dividend yield of 6.40%.

R.R. Donnelley & Sons Company provides integrated communication solutions to private and public sectors worldwide.

The average volume for R.R. Donnelley & Sons Company has been 2,398,800 shares per day over the past 30 days. R.R. Donnelley & Sons Company has a market cap of $3.0 billion and is part of the diversified services industry. Shares are up 81.5% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates R.R. Donnelley & Sons Company as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:
  • RRD's revenue growth has slightly outpaced the industry average of 7.5%. Since the same quarter one year prior, revenues slightly increased by 1.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Compared to its closing price of one year ago, RRD's share price has jumped by 43.63%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • The gross profit margin for DONNELLEY (R R) & SONS CO is rather low; currently it is at 23.26%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.54% trails that of the industry average.
  • 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 Commercial Services & Supplies industry. The net income has significantly decreased by 26.4% when compared to the same quarter one year ago, falling from $88.80 million to $65.40 million.

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

Potash Corporation of Saskatchewan

Dividend Yield: 4.40%

Potash Corporation of Saskatchewan (NYSE: POT) shares currently have a dividend yield of 4.40%.

Sameer's Proprietary Business Description. THIS SHOULD BE QUITE NOTICEABLE IN THE EVENT OF A PROP LEAK! Sameer's Proprietary Business Description. THIS SHOULD BE QUITE NOTICEABLE IN THE EVENT OF A PROP LEAK! Sameer's Proprietary Business Description. The company has a P/E ratio of 12.29.

The average volume for Potash Corporation of Saskatchewan has been 13,057,300 shares per day over the past 30 days. Potash Corporation of Saskatchewan has a market cap of $27.5 billion and is part of the chemicals industry. Shares are down 19.3% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Potash Corporation of Saskatchewan as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Chemicals industry average. The net income increased by 23.2% when compared to the same quarter one year prior, going from $522.00 million to $643.00 million.
  • The gross profit margin for POTASH CORP SASK INC is rather high; currently it is at 50.56%. Regardless of POT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, POT's net profit margin of 29.99% significantly outperformed against the industry.
  • The current debt-to-equity ratio, 0.34, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.98 is somewhat weak and could be cause for future problems.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Chemicals industry and the overall market on the basis of return on equity, POTASH CORP SASK INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • Net operating cash flow has declined marginally to $1,202.00 million or 1.63% when compared to the same quarter last year. Despite a decrease in cash flow of 1.63%, POTASH CORP SASK INC is in line with the industry average cash flow growth rate of -7.60%.

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

Vale

Dividend Yield: 4.60%

Vale (NYSE: VALE) shares currently have a dividend yield of 4.60%.

Vale S.A. engages in the research, production, and marketing of iron ore and pellets, nickel, fertilizers, copper, coal, manganese, ferroalloys, cobalt, platinum group metals, and precious metals in Brazil and internationally. The company has a P/E ratio of 15.26.

The average volume for Vale has been 18,518,300 shares per day over the past 30 days. Vale has a market cap of $85.3 billion and is part of the metals & mining industry. Shares are down 19.8% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Vale as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:
  • The current debt-to-equity ratio, 0.45, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.15, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has slightly increased to $4,162.84 million or 2.92% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -11.95%.
  • The gross profit margin for VALE SA is rather high; currently it is at 52.79%. Regardless of VALE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, VALE's net profit margin of 1.24% is significantly lower than the industry average.
  • 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 Metals & Mining industry. The net income has significantly decreased by 94.9% when compared to the same quarter one year ago, falling from $2,302.44 million to $117.72 million.
  • In its most recent trading session, VALE has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.

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: 4.30%

Weingarten Realty Investors (NYSE: WRI) shares currently have a dividend yield of 4.30%.

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 46.82.

The average volume for Weingarten Realty Investors has been 829,700 shares per day over the past 30 days. Weingarten Realty Investors has a market cap of $3.5 billion and is part of the real estate industry. Shares are up 7.1% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Weingarten Realty Investors as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and expanding profit margins. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 10.8%. Since the same quarter one year prior, revenues rose by 33.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • 38.59% is the gross profit margin for WEINGARTEN REALTY INVST which we consider to be strong. It has increased significantly from the same period last year. Along with this, the net profit margin of 48.00% significantly outperformed against the industry average.
  • WEINGARTEN REALTY INVST has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, WEINGARTEN REALTY INVST turned its bottom line around by earning $0.24 versus -$0.33 in the prior year. This year, the market expects an improvement in earnings ($0.66 versus $0.24).
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, WEINGARTEN REALTY INVST's return on equity is below that of both the industry average and the S&P 500.
  • In its most recent trading session, WRI has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.

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

Other helpful dividend tools from TheStreet:

null

More from Markets

Stocks Tumble as Trump Calls Off North Korea Summit

Stocks Tumble as Trump Calls Off North Korea Summit

Stocks Could Easily Crater Into Memorial Day Weekend

Stocks Could Easily Crater Into Memorial Day Weekend

Video: Here Is How Real Estate Investment Trusts Can Boost Your Portfolio

Video: Here Is How Real Estate Investment Trusts Can Boost Your Portfolio

Celgene Shares Rise on Plans to Increase Stock Buybacks

Celgene Shares Rise on Plans to Increase Stock Buybacks

Global Stocks Slide as Trump's New Trade War Salvo Ignites Fresh Concern

Global Stocks Slide as Trump's New Trade War Salvo Ignites Fresh Concern