Don't Miss Out: Top 3 Yielding Buy-Rated Stocks: SIX, BGS, ACMP

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 "Buy."

Six Flags Entertainment

Dividend Yield: 5.10%

Six Flags Entertainment (NYSE: SIX) shares currently have a dividend yield of 5.10%.

Six Flags Entertainment Corporation owns and operates regional theme, water, and zoological parks. The company's parks offer various thrill rides, water attractions, themed areas, concerts and shows, restaurants, game venues, and retail outlets. The company has a P/E ratio of 26.91.

The average volume for Six Flags Entertainment has been 687,300 shares per day over the past 30 days. Six Flags Entertainment has a market cap of $3.5 billion and is part of the leisure industry. Shares are up 0.2% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates Six Flags Entertainment as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, increase in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • SIX's revenue growth has slightly outpaced the industry average of 5.8%. Since the same quarter one year prior, revenues slightly increased by 3.5%. 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 Hotels, Restaurants & Leisure industry. The net income increased by 40.0% when compared to the same quarter one year prior, rising from $47.36 million to $66.31 million.
  • The gross profit margin for SIX FLAGS ENTERTAINMENT CORP is rather high; currently it is at 58.07%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 17.60% is above that of the industry average.
  • Net operating cash flow has slightly increased to $177.21 million or 2.52% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -26.36%.
  • SIX FLAGS ENTERTAINMENT CORP has improved earnings per share by 42.5% 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, SIX FLAGS ENTERTAINMENT CORP reported lower earnings of $1.20 versus $3.04 in the prior year. This year, the market expects an improvement in earnings ($1.51 versus $1.20).

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

B&G Foods

Dividend Yield: 4.80%

B&G Foods (NYSE: BGS) shares currently have a dividend yield of 4.80%.

B&G Foods, Inc. manufactures, sells, and distributes shelf-stable food and household products in the United States, Canada, and Puerto Rico. The company has a P/E ratio of 26.25.

The average volume for B&G Foods has been 342,900 shares per day over the past 30 days. B&G Foods has a market cap of $1.5 billion and is part of the food & beverage industry. Shares are down 14.4% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates B&G Foods as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, impressive record of earnings per share growth 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:
  • The revenue growth came in higher than the industry average of 3.0%. Since the same quarter one year prior, revenues rose by 26.1%. 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 Food Products industry. The net income increased by 1226.2% when compared to the same quarter one year prior, rising from -$1.43 million to $16.14 million.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Food Products industry and the overall market on the basis of return on equity, B&G FOODS INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • B&G FOODS INC 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, B&G FOODS INC reported lower earnings of $0.98 versus $1.21 in the prior year. This year, the market expects an improvement in earnings ($1.57 versus $0.98).
  • BGS has underperformed the S&P 500 Index, declining 20.63% from its price level of one year ago. Despite the decline in its share price over the last year, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry. We feel, however, that other strengths this company displays compensate for this.

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

Access Midstream Partners

Dividend Yield: 4.10%

Access Midstream Partners (NYSE: ACMP) shares currently have a dividend yield of 4.10%.

Access Midstream Partners, L.P. owns, operates, develops, and acquires natural gas, natural gas liquids (NGLs) and oil gathering systems, and other midstream energy assets in the United States. It focuses on natural gas and NGL gathering operations. The company has a P/E ratio of 57.45.

The average volume for Access Midstream Partners has been 657,900 shares per day over the past 30 days. Access Midstream Partners has a market cap of $11.2 billion and is part of the energy industry. Shares are up 6.2% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates Access Midstream Partners as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins, good cash flow from operations and solid stock price performance. 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 revenue growth came in higher than the industry average of 2.1%. Since the same quarter one year prior, revenues rose by 18.5%. 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 gross profit margin for ACCESS MIDSTREAM PARTNERS LP is rather high; currently it is at 66.71%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 23.02% significantly outperformed against the industry average.
  • Net operating cash flow has increased to $192.94 million or 40.36% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -7.19%.
  • Compared to its closing price of one year ago, ACMP's share price has jumped by 25.17%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • ACCESS MIDSTREAM PARTNERS LP's earnings per share declined by 21.7% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, ACCESS MIDSTREAM PARTNERS LP increased its bottom line by earning $1.14 versus $1.13 in the prior year. This year, the market expects an improvement in earnings ($1.60 versus $1.14).

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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