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

Tallgrass Energy Partners

Dividend Yield: 4.10%

Tallgrass Energy Partners (NYSE: TEP) shares currently have a dividend yield of 4.10%.

Tallgrass Energy Partners, LP acquires, owns, develops, and operates various midstream energy assets in North America. The company operates through three segments: Natural Gas Transportation & Logistics; Crude Oil Transportation & Logistics; and Processing & Logistics. The company has a P/E ratio of 35.09.

The average volume for Tallgrass Energy Partners has been 322,900 shares per day over the past 30 days. Tallgrass Energy Partners has a market cap of $2.3 billion and is part of the energy industry. Shares are up 4.9% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates Tallgrass Energy Partners as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and compelling growth in net income. 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:
  • The revenue growth greatly exceeded the industry average of 19.8%. Since the same quarter one year prior, revenues rose by 26.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.54, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.21, which illustrates the ability to avoid short-term cash problems.
  • Powered by its strong earnings growth of 60.60% and other important driving factors, this stock has surged by 52.91% over the past year, outperforming the rise in the S&P 500 Index during the same period. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, TALLGRASS ENERGY PRT LP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • Net operating cash flow has declined marginally to $32.20 million or 1.64% when compared to the same quarter last year. Despite a decrease in cash flow TALLGRASS ENERGY PRT LP is still fairing well by exceeding its industry average cash flow growth rate of -11.94%.

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Regency Energy Partners

Dividend Yield: 8.90%

Regency Energy Partners (NYSE: RGP) shares currently have a dividend yield of 8.90%.

Regency Energy Partners LP engages in the gathering and processing, compression, treating, and transportation of natural gas; and transportation, fractionation, and storage of natural gas liquids (NGLs).

The average volume for Regency Energy Partners has been 1,671,300 shares per day over the past 30 days. Regency Energy Partners has a market cap of $9.3 billion and is part of the energy industry. Shares are down 6.1% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates Regency Energy Partners as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:
  • RGP's very impressive revenue growth greatly exceeded the industry average of 19.8%. Since the same quarter one year prior, revenues leaped by 110.8%. 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 debt-to-equity ratio is somewhat low, currently at 0.70, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
  • REGENCY ENERGY PARTNERS LP 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. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, REGENCY ENERGY PARTNERS LP swung to a loss, reporting -$0.49 versus $0.03 in the prior year. This year, the market expects an improvement in earnings ($0.48 versus -$0.49).
  • 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 26000.0% when compared to the same quarter one year ago, falling from -$1.00 million to -$261.00 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, REGENCY ENERGY PARTNERS LP's return on equity significantly trails that of both the industry average and the S&P 500.

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Helmerich & Payne

Dividend Yield: 4.30%

Helmerich & Payne (NYSE: HP) shares currently have a dividend yield of 4.30%.

Helmerich & Payne, Inc. primarily operates as a contract drilling company in South America, the Middle East, and Africa. The company has a P/E ratio of 9.57.

The average volume for Helmerich & Payne has been 2,571,100 shares per day over the past 30 days. Helmerich & Payne has a market cap of $6.9 billion and is part of the energy industry. Shares are down 4.3% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates Helmerich & Payne as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and feeble growth in the company's earnings per share.

Highlights from the ratings report include:
  • HP's revenue growth has slightly outpaced the industry average of 14.6%. Since the same quarter one year prior, revenues rose by 18.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • HP's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, HP has a quick ratio of 2.20, which demonstrates the ability of the company to cover short-term liquidity needs.
  • HP's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 31.33%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Energy Equipment & Services industry and the overall market on the basis of return on equity, HELMERICH & PAYNE has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

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