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." One Liberty Properties Dividend Yield: 7.10% One Liberty Properties (NYSE: OLP) shares currently have a dividend yield of 7.10%. One Liberty Properties, Inc., a real estate investment trust (REIT), engages in the acquisition, ownership, and management of commercial real estate properties in the United States. The company has a P/E ratio of 23.58. The average volume for One Liberty Properties has been 33,900 shares per day over the past 30 days. One Liberty Properties has a market cap of $338.5 million and is part of the real estate industry. Shares are up 2.9% year-to-date as of the close of trading on Monday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings rates One Liberty Properties as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels, expanding profit margins and good cash flow from operations. 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 11.6%. Since the same quarter one year prior, revenues rose by 31.1%. 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 ONE LIBERTY PROPERTIES INC is rather high; currently it is at 55.65%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 29.37% is above that of the industry average.
- Net operating cash flow has increased to $9.34 million or 42.99% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 18.94%.
- ONE LIBERTY PROPERTIES INC's earnings per share declined by 40.8% 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, ONE LIBERTY PROPERTIES INC increased its bottom line by earning $1.10 versus $0.80 in the prior year. For the next year, the market is expecting a contraction of 10.0% in earnings ($0.99 versus $1.10).
- You can view the full One Liberty Properties Ratings Report.