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

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 three stocks with substantial yields, that ultimately, we have rated "Buy."

CenturyLink

Dividend Yield: 6.0999999999999996447286321199499070644378662109375

CenturyLink (NYSE: CTL) shares currently have a dividend yield of 6.0999999999999996447286321199499070644378662109375.

CenturyLink, Inc. provides various communications services to residential, business, governmental, and wholesale customers in the United States. It operates through two segments, Business and Consumer. The company has a P/E ratio of 26.04.

The average volume for CenturyLink has been 4011100 shares per day over the past 30 days. CenturyLink has a market cap of $20.06 billion and is part of the telecommunications industry. Shares are down 11% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates CenturyLink as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins, notable return on equity and solid stock price performance. 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:
  • Net operating cash flow has slightly increased to $1,251.00 million or 8.68% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -27.10%.
  • The gross profit margin for CENTURYLINK INC is rather high; currently it is at 56.38%. Regardless of CTL's high profit margin, it has managed to decrease from the same period last year.
  • CENTURYLINK INC's earnings per share declined by 19.5% 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, CENTURYLINK INC turned its bottom line around by earning $1.35 versus -$0.43 in the prior year. This year, the market expects an improvement in earnings ($2.56 versus $1.35).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 4.1%. Since the same quarter one year prior, revenues slightly dropped by 2.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Diversified Telecommunication Services industry average, but is less than that of the S&P 500. The net income has decreased by 21.3% when compared to the same quarter one year ago, dropping from $239.00 million to $188.00 million.

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

Potash Corp of Saskatchewan

Dividend Yield: 4.5

Potash Corp of Saskatchewan (NYSE: POT) shares currently have a dividend yield of 4.5.

Potash Corporation of Saskatchewan Inc., together with its subsidiaries, produces and sells fertilizers and related industrial and feed products worldwide. The company operates in three segments: Potash, Nitrogen, and Phosphate. The company has a P/E ratio of 18.62.

The average volume for Potash Corp of Saskatchewan has been 3504900 shares per day over the past 30 days. Potash Corp of Saskatchewan has a market cap of $28.16 billion and is part of the chemicals industry. Shares are down 4.4% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates Potash Corp of Saskatchewan as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, expanding profit margins, good cash flow from operations and growth in earnings per share. 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 4.7%. Since the same quarter one year prior, revenues rose by 23.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 44.48% is the gross profit margin for POTASH CORP SASK INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 21.39% significantly outperformed against the industry average.
  • Net operating cash flow has slightly increased to $713.00 million or 8.68% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -2.70%.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Chemicals industry. The net income increased by 77.0% when compared to the same quarter one year prior, rising from $230.00 million to $407.00 million.
  • The current debt-to-equity ratio, 0.48, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that POT's debt-to-equity ratio is low, the quick ratio, which is currently 0.57, displays a potential problem in covering 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.

Government Properties Income

Dividend Yield: 7.70000000000000017763568394002504646778106689453125

Government Properties Income (NYSE: GOV) shares currently have a dividend yield of 7.70000000000000017763568394002504646778106689453125.

Government Properties Income Trust operates as a real estate investment trust (REIT) in the United States. It primarily owns and leases office buildings that are leased mainly to government tenants. The company has a P/E ratio of 26.1.

The average volume for Government Properties Income has been 653700 shares per day over the past 30 days. Government Properties Income has a market cap of $1.58 billion and is part of the real estate industry. Shares are down 3.2% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates Government Properties Income as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 9.9%. Since the same quarter one year prior, revenues rose by 21.0%. 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 increased to $38.68 million or 48.49% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 8.19%.
  • GOVERNMENT PPTYS INCOME TR's earnings per share declined by 13.0% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, GOVERNMENT PPTYS INCOME TR reported lower earnings of $0.87 versus $1.02 in the prior year. This year, the market expects an improvement in earnings ($0.97 versus $0.87).
  • The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Real Estate Investment Trusts (REITs) industry average. The net income increased by 10.9% when compared to the same quarter one year prior, going from $12.72 million to $14.11 million.

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