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."Tupperware Brands Dividend Yield: 4.30% Tupperware Brands (NYSE: TUP) shares currently have a dividend yield of 4.30%. Tupperware Brands Corporation operates as a direct-to-consumer marketer of various products across a range of brands and categories worldwide. The company has a P/E ratio of 14.76. The average volume for Tupperware Brands has been 521,700 shares per day over the past 30 days. Tupperware Brands has a market cap of $3.2 billion and is part of the consumer non-durables industry. Shares are down 32.4% 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 Tupperware Brands as a hold. The company's strengths can be seen in multiple areas, such as its expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and weak operating cash flow. Highlights from the ratings report include:
- TUPPERWARE BRANDS CORP's earnings per share declined by 33.7% 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, TUPPERWARE BRANDS CORP increased its bottom line by earning $5.18 versus $3.43 in the prior year. This year, the market expects an improvement in earnings ($5.25 versus $5.18).
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 6.4%. Since the same quarter one year prior, revenues slightly dropped by 2.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The debt-to-equity ratio is very high at 3.64 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
- 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 Household Durables industry. The net income has significantly decreased by 35.4% when compared to the same quarter one year ago, falling from $50.00 million to $32.30 million.
- You can view the full Tupperware Brands Ratings Report.
- The revenue growth greatly exceeded the industry average of 1.9%. Since the same quarter one year prior, revenues rose by 43.5%. 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.
- Net operating cash flow has significantly increased by 2749.14% to $15.42 million when compared to the same quarter last year. In addition, SCORPIO TANKERS INC has also vastly surpassed the industry average cash flow growth rate of -6.46%.
- STNG's debt-to-equity ratio of 0.95 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that STNG's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.68 is high and demonstrates strong liquidity.
- This stock's share value has moved by only 29.63% over the past year. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
- 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 Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 273.8% when compared to the same quarter one year ago, falling from $0.67 million to -$1.16 million.
- You can view the full Scorpio Tankers Ratings Report.
- ELP's very impressive revenue growth greatly exceeded the industry average of 5.3%. Since the same quarter one year prior, revenues leaped by 69.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The current debt-to-equity ratio, 0.43, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, ELP has a quick ratio of 1.56, which demonstrates the ability of the company to cover short-term liquidity needs.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Electric Utilities industry average. The net income increased by 10.2% when compared to the same quarter one year prior, going from $92.61 million to $102.09 million.
- The gross profit margin for COPEL-CIA PARANAENSE ENERGIA is currently extremely low, coming in at 14.30%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 7.05% trails that of the industry average.
- Net operating cash flow has significantly decreased to $220.19 million or 50.05% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full Energy Company of Parana Ratings Report.
- Our dividend calendar.