What To Buy: Top 4 Buy-Rated Dividend Stocks: NYCB, NNN, VZ, PEG

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

New York Community Bancorp

Dividend Yield: 6.80%

New York Community Bancorp (NYSE: NYCB) shares currently have a dividend yield of 6.80%.

New York Community Bancorp, Inc. operates as a multi-bank holding company for New York Community Bank and New York Commercial Bank that offer banking products and financial services in New York, New Jersey, Florida, Ohio, and Arizona. The company has a P/E ratio of 13.16.

The average volume for New York Community Bancorp has been 3,270,700 shares per day over the past 30 days. New York Community Bancorp has a market cap of $6.5 billion and is part of the banking industry. Shares are up 12.5% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates New York Community Bancorp 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 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:
  • The gross profit margin for NEW YORK CMNTY BANCORP INC is currently very high, coming in at 70.16%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 24.98% is above that of the industry average.
  • Net operating cash flow has significantly increased by 107.72% to $26.74 million when compared to the same quarter last year. In addition, NEW YORK CMNTY BANCORP INC has also vastly surpassed the industry average cash flow growth rate of -357.21%.
  • 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.
  • The revenue fell significantly faster than the industry average of 112.2%. Since the same quarter one year prior, revenues fell by 11.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

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

National Retail Properties

Dividend Yield: 5.20%

National Retail Properties (NYSE: NNN) shares currently have a dividend yield of 5.20%.

National Retail Properties, Inc. is a publicly owned equity real estate investment trust. The firm acquires, owns, manages, and develops retail properties in the United States. The company has a P/E ratio of 29.22.

The average volume for National Retail Properties has been 1,468,800 shares per day over the past 30 days. National Retail Properties has a market cap of $3.8 billion and is part of the real estate industry. Shares are down 0.7% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates National Retail Properties as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, expanding profit margins, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • NATIONAL RETAIL PROPERTIES has improved earnings per share by 13.0% 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, NATIONAL RETAIL PROPERTIES increased its bottom line by earning $0.98 versus $0.90 in the prior year. This year, the market expects an improvement in earnings ($1.07 versus $0.98).
  • Despite its growing revenue, the company underperformed as compared with the industry average of 10.8%. Since the same quarter one year prior, revenues slightly increased by 7.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The gross profit margin for NATIONAL RETAIL PROPERTIES is rather high; currently it is at 62.25%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 38.84% is above that of the industry average.
  • Net operating cash flow has increased to $55.37 million or 12.60% when compared to the same quarter last year. In addition, NATIONAL RETAIL PROPERTIES has also modestly surpassed the industry average cash flow growth rate of 5.35%.
  • 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. When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, NATIONAL RETAIL PROPERTIES's return on equity is below 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.

Verizon Communications

Dividend Yield: 4.60%

Verizon Communications (NYSE: VZ) shares currently have a dividend yield of 4.60%.

Verizon Communications Inc., through its subsidiaries, provides communications, information and entertainment products and services to consumers, businesses, and governmental agencies worldwide. The company has a P/E ratio of 86.06.

The average volume for Verizon Communications has been 11,938,800 shares per day over the past 30 days. Verizon Communications has a market cap of $133.0 billion and is part of the telecommunications industry. Shares are up 7.4% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Verizon Communications as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • VZ's revenue growth has slightly outpaced the industry average of 2.7%. Since the same quarter one year prior, revenues slightly increased by 4.3%. 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 exceeded that of the S&P 500 and greatly outperformed compared to the Diversified Telecommunication Services industry average. The net income increased by 23.1% when compared to the same quarter one year prior, going from $1,825.00 million to $2,246.00 million.
  • Net operating cash flow has slightly increased to $9,617.00 million or 3.25% when compared to the same quarter last year. In addition, VERIZON COMMUNICATIONS INC has also modestly surpassed the industry average cash flow growth rate of -2.13%.
  • The gross profit margin for VERIZON COMMUNICATIONS INC is rather high; currently it is at 62.96%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 7.54% trails the industry average.
  • VERIZON COMMUNICATIONS INC has improved earnings per share by 21.9% 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, VERIZON COMMUNICATIONS INC reported lower earnings of $0.31 versus $0.86 in the prior year. This year, the market expects an improvement in earnings ($2.79 versus $0.31).

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

Public Service Enterprise Group

Dividend Yield: 4.50%

Public Service Enterprise Group (NYSE: PEG) shares currently have a dividend yield of 4.50%.

Public Service Enterprise Group Incorporated, through its subsidiaries, operates as an energy company primarily in the northeastern and mid Atlantic United States. The company has a P/E ratio of 13.41.

The average volume for Public Service Enterprise Group has been 2,455,200 shares per day over the past 30 days. Public Service Enterprise Group has a market cap of $16.3 billion and is part of the utilities industry. Shares are up 5.6% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Public Service Enterprise Group 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, expanding profit margins and good cash flow from operations. 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 2.6%. Since the same quarter one year prior, revenues rose by 10.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 38.74% is the gross profit margin for PUBLIC SERVICE ENTRP GRP 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 14.41% is above that of the industry average.
  • Net operating cash flow has significantly increased by 60.68% to $466.00 million when compared to the same quarter last year. In addition, PUBLIC SERVICE ENTRP GRP INC has also vastly surpassed the industry average cash flow growth rate of 4.31%.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Multi-Utilities industry. The net income increased by 57.8% when compared to the same quarter one year prior, rising from $211.00 million to $333.00 million.

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

Other helpful dividend tools from TheStreet:
null

If you liked this article you might like

Nvidia Is 1 of 30 Well-Known Stocks That Look Ready to Abruptly Change Direction

Nvidia Is 1 of 30 Well-Known Stocks That Look Ready to Abruptly Change Direction

Who's Afraid of the Amazon Empire?: Cramer's 'Mad Money' Recap (Thursday 6/22/17)

Who's Afraid of the Amazon Empire?: Cramer's 'Mad Money' Recap (Thursday 6/22/17)

Citigroup, Zoetis, AbbVie, Mattel, Valeant Pharmaceuticals 'Mad Money' Lightning Round

Citigroup, Zoetis, AbbVie, Mattel, Valeant Pharmaceuticals 'Mad Money' Lightning Round

Community Banks Could Be Big Winners in Treasury Regulation Overhaul

Community Banks Could Be Big Winners in Treasury Regulation Overhaul

Bigger Bank Deals Get Green Light With Fed's Easing of Merger Hurdle

Bigger Bank Deals Get Green Light With Fed's Easing of Merger Hurdle