5 Hold-Rated Dividend Stocks: BMR, LINE, WPC, CBL, 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."

BioMed Realty

Dividend Yield: 5.50%

BioMed Realty (NYSE: BMR) shares currently have a dividend yield of 5.50%.

BioMed Realty Trust, Inc. operates as a real estate investment trust (REIT) that focuses on providing real estate to the life science industry in the United States. The company has a P/E ratio of 107.71.

The average volume for BioMed Realty has been 1,176,500 shares per day over the past 30 days. BioMed Realty has a market cap of $3.5 billion and is part of the real estate industry. Shares are down 3.8% year-to-date as of the close of trading on Wednesday.

TheStreet Ratings rates BioMed Realty as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and poor profit margins.

Highlights from the ratings report include:
  • BMR's revenue growth has slightly outpaced the industry average of 9.6%. Since the same quarter one year prior, revenues rose by 18.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • BIOMED REALTY TRUST INC reported flat earnings per share in the most recent quarter. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, BIOMED REALTY TRUST INC reported lower earnings of $0.01 versus $0.18 in the prior year. This year, the market expects an improvement in earnings ($0.16 versus $0.01).
  • 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 Real Estate Investment Trusts (REITs) industry and the overall market on the basis of return on equity, BIOMED REALTY TRUST INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • 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 Real Estate Investment Trusts (REITs) industry. The net income has significantly decreased by 33.7% when compared to the same quarter one year ago, falling from $6.41 million to $4.25 million.
  • BMR has underperformed the S&P 500 Index, declining 6.79% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.

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

Linn Energy

Dividend Yield: 10.60%

Linn Energy (NASDAQ: LINE) shares currently have a dividend yield of 10.60%.

Linn Energy, LLC, an independent oil and natural gas company, engages in the acquisition and development of oil and natural gas properties.

The average volume for Linn Energy has been 2,066,200 shares per day over the past 30 days. Linn Energy has a market cap of $6.8 billion and is part of the energy industry. Shares are down 18.3% year-to-date as of the close of trading on Wednesday.

TheStreet Ratings rates Linn Energy 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 good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • LINE's very impressive revenue growth greatly exceeded the industry average of 5.4%. Since the same quarter one year prior, revenues leaped by 923.3%. 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 significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 93.0% when compared to the same quarter one year prior, rising from -$430.01 million to -$30.06 million.
  • LINN ENERGY LLC reported significant earnings per share improvement 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, LINN ENERGY LLC swung to a loss, reporting -$1.86 versus $2.21 in the prior year. This year, the market expects an improvement in earnings ($0.93 versus -$1.86).
  • LINE has underperformed the S&P 500 Index, declining 19.71% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • Currently the debt-to-equity ratio of 1.61 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with this, the company manages to maintain a quick ratio of 0.46, which clearly demonstrates the inability to cover short-term cash needs.

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

W. P. Carey

Dividend Yield: 5.60%

W. P. Carey (NYSE: WPC) shares currently have a dividend yield of 5.60%.

W. P. Carey Inc. is an independent equity real estate investment trust. The firm also provides long-term sale-leaseback and build-to-suit financing for companies. It invests in the real estate markets across the globe. The company has a P/E ratio of 68.61.

The average volume for W. P. Carey has been 286,100 shares per day over the past 30 days. W. P. Carey has a market cap of $4.2 billion and is part of the real estate industry. Shares are up 20.3% year-to-date as of the close of trading on Wednesday.

TheStreet Ratings rates W. P. Carey as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in stock price during the past year and compelling growth in net income. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.

Highlights from the ratings report include:
  • WPC's very impressive revenue growth greatly exceeded the industry average of 9.6%. Since the same quarter one year prior, revenues leaped by 99.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The gross profit margin for W P CAREY INC is currently very high, coming in at 76.74%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 13.41% trails the industry average.
  • 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, W P CAREY INC's return on equity is below that of both the industry average and the S&P 500.
  • W P CAREY INC has improved earnings per share by 23.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, W P CAREY INC reported lower earnings of $1.96 versus $3.71 in the prior year. For the next year, the market is expecting a contraction of 5.9% in earnings ($1.85 versus $1.96).

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

CBL & Associates Properties

Dividend Yield: 5.50%

CBL & Associates Properties (NYSE: CBL) shares currently have a dividend yield of 5.50%.

CBL & Associates Properties, Inc. is a public real estate investment trust. It engages in acquisition, development, and management of properties. The fund invests in the real estate markets of United States. Its portfolio consists of enclosed malls and open-air centers. The company has a P/E ratio of 33.51.

The average volume for CBL & Associates Properties has been 1,359,200 shares per day over the past 30 days. CBL & Associates Properties has a market cap of $3.0 billion and is part of the real estate industry. Shares are down 16.3% year-to-date as of the close of trading on Wednesday.

TheStreet Ratings rates CBL & Associates Properties as a hold. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • CBL & ASSOCIATES PPTYS INC 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. This trend suggests that the performance of the business is improving. During the past fiscal year, CBL & ASSOCIATES PPTYS INC increased its bottom line by earning $0.60 versus $0.49 in the prior year. This year, the market expects an improvement in earnings ($0.64 versus $0.60).
  • 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 325.1% when compared to the same quarter one year prior, rising from $8.07 million to $34.32 million.
  • 38.40% is the gross profit margin for CBL & ASSOCIATES PPTYS INC which we consider to be strong. Regardless of CBL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 13.22% trails the industry average.
  • CBL has underperformed the S&P 500 Index, declining 20.29% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • 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. When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, CBL & ASSOCIATES PPTYS INC'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.

Weingarten Realty Investors

Dividend Yield: 4.40%

Weingarten Realty Investors (NYSE: WRI) shares currently have a dividend yield of 4.40%.

Weingarten Realty Investors is a publically owned real estate investment trust. The firm invests in the real estate markets of United States. It makes its investments in neighborhood and community shopping centers. Weingarten Realty Investors was formed in 1948, and is based in Houston, Texas. The company has a P/E ratio of 41.24.

The average volume for Weingarten Realty Investors has been 671,100 shares per day over the past 30 days. Weingarten Realty Investors has a market cap of $3.4 billion and is part of the real estate industry. Shares are up 5.3% year-to-date as of the close of trading on Wednesday.

TheStreet Ratings rates Weingarten Realty Investors as a hold. 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 and revenue growth. However, as a counter to these strengths, we find that the stock has experienced relatively poor performance when compared with the S&P 500 during the past year.

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. This trend suggests that the performance of the business is improving. During the past fiscal year, WEINGARTEN REALTY INVST turned its bottom line around by earning $0.20 versus -$0.33 in the prior year. This year, the market expects an improvement in earnings ($1.05 versus $0.20).
  • 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 50.3% when compared to the same quarter one year prior, rising from $40.27 million to $60.54 million.
  • 37.09% is the gross profit margin for WEINGARTEN REALTY INVST which we consider to be strong. Regardless of WRI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, WRI's net profit margin of 43.98% significantly outperformed against the industry.
  • 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, 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, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry, implying reduced upside potential.

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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