3 Hold-Rated Dividend Stocks: STAG, FIG, CM

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 which could 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 3 stocks with substantial yields, that ultimately, we have rated "Hold."

Stag Industrial

Dividend Yield: 5.50%

Stag Industrial (NYSE: STAG) shares currently have a dividend yield of 5.50%.

STAG Industrial, Inc. is a real estate investment trust. The firm invests in the real estate markets of United States. It is engaged in investment and management of real estate assets. STAG Industrial, Inc. was founded on July 21, 2010 and is based in Boston, Massachusetts.

The average volume for Stag Industrial has been 414,100 shares per day over the past 30 days. Stag Industrial has a market cap of $1.3 billion and is part of the real estate industry. Shares are up 17.5% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates Stag Industrial 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 find that the company's profit margins have been poor overall.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 10.3%. Since the same quarter one year prior, revenues rose by 32.5%. 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.
  • 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 351.6% when compared to the same quarter one year prior, rising from -$0.15 million to $0.39 million.
  • Net operating cash flow has increased to $14.53 million or 15.49% when compared to the same quarter last year. Despite an increase in cash flow, STAG INDUSTRIAL INC's cash flow growth rate is still lower than the industry average growth rate of 29.62%.
  • 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, STAG INDUSTRIAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for STAG INDUSTRIAL INC is currently extremely low, coming in at 14.18%. Regardless of STAG's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, STAG's net profit margin of 0.96% is significantly lower than 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.

Fortress Investment Group

Dividend Yield: 4.50%

Fortress Investment Group (NYSE: FIG) shares currently have a dividend yield of 4.50%.

Fortress Investment Group LLC is a publicly owned investment manager. The company has a P/E ratio of 9.41.

The average volume for Fortress Investment Group has been 2,452,900 shares per day over the past 30 days. Fortress Investment Group has a market cap of $1.4 billion and is part of the financial services industry. Shares are down 16.9% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates Fortress Investment Group 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 unimpressive growth in net income, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 5.1%. Since the same quarter one year prior, revenues rose by 26.9%. 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.
  • 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 Capital Markets industry and the overall market, FORTRESS INVESTMENT GRP LLC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • FORTRESS INVESTMENT GRP LLC has experienced 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, FORTRESS INVESTMENT GRP LLC turned its bottom line around by earning $0.65 versus -$0.08 in the prior year. This year, the market expects an improvement in earnings ($0.77 versus $0.65).
  • The gross profit margin for FORTRESS INVESTMENT GRP LLC is currently extremely low, coming in at 4.88%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.94% significantly trails the industry average.
  • Net operating cash flow has significantly decreased to -$98.53 million or 215.03% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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

Canadian Imperial Bank of Commerce

Dividend Yield: 4.10%

Canadian Imperial Bank of Commerce (NYSE: CM) shares currently have a dividend yield of 4.10%.

Canadian Imperial Bank of Commerce, a diversified financial institution, provides various financial products and services to individuals, small businesses, and commercial, corporate, and institutional clients in Canada and internationally. The company has a P/E ratio of 11.62.

The average volume for Canadian Imperial Bank of Commerce has been 149,200 shares per day over the past 30 days. Canadian Imperial Bank of Commerce has a market cap of $35.9 billion and is part of the banking industry. Shares are up 3.4% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates Canadian Imperial Bank of Commerce as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and increase in stock price during the past year. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

Highlights from the ratings report include:
  • CM's revenue growth has slightly outpaced the industry average of 2.4%. Since the same quarter one year prior, revenues slightly increased by 7.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 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. In comparison to the other companies in the Commercial Banks industry and the overall market, CANADIAN IMPERIAL BANK's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • The gross profit margin for CANADIAN IMPERIAL BANK is currently very high, coming in at 76.03%. 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 25.79% trails the industry average.
  • Net operating cash flow has significantly decreased to -$5,196.00 million or 457.11% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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

2 Dependable REITs With Great Dividends

2 Dependable REITs With Great Dividends

'Mad Money Lightning Round: Schlumberger Is the Best of Breed

'Mad Money Lightning Round: Schlumberger Is the Best of Breed

These Stocks Are Too Hot, in a Bad Way : Jim Cramer's 'Mad Money' Recap

These Stocks Are Too Hot, in a Bad Way : Jim Cramer's 'Mad Money' Recap

5 Dividend Stocks With Charts That Suggest Sell Signals Ahead

5 Dividend Stocks With Charts That Suggest Sell Signals Ahead

Here Are the 7 Best Stocks That Pay Monthly Dividends

Here Are the 7 Best Stocks That Pay Monthly Dividends