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 "Buy."

Global Partners

Dividend Yield: 7.60%

Global Partners (NYSE: GLP) shares currently have a dividend yield of 7.60%.

Global Partners LP distributes gasoline, distillates, residual oil, renewable fuels, crude oil, natural gas, and propane to wholesalers, retailers, and commercial customers in the New England states and New York. The company has a P/E ratio of 8.91.

The average volume for Global Partners has been 95,200 shares per day over the past 30 days. Global Partners has a market cap of $1.1 billion and is part of the wholesale industry. Shares are up 9.6% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates Global Partners as a buy. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations and notable return on equity. 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 significantly increased by 14479.80% to $150.90 million when compared to the same quarter last year. In addition, GLOBAL PARTNERS LP has also vastly surpassed the industry average cash flow growth rate of -11.94%.
  • 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 Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, GLOBAL PARTNERS LP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • GLP, with its decline in revenue, slightly underperformed the industry average of 19.6%. Since the same quarter one year prior, revenues fell by 26.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income has decreased by 18.0% when compared to the same quarter one year ago, dropping from $34.04 million to $27.91 million.

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Solar Senior Capital

Dividend Yield: 8.60%

Solar Senior Capital (NASDAQ: SUNS) shares currently have a dividend yield of 8.60%.

Solar Senior Capital Ltd. is a business development company specializing in investments in leveraged, middle-market companies in the United States. The fund invests in the form of senior secured loans, including first lien, unitranche, and second lien debt instruments. The company has a P/E ratio of 14.19.

The average volume for Solar Senior Capital has been 32,900 shares per day over the past 30 days. Solar Senior Capital has a market cap of $189.8 million and is part of the financial services industry. Shares are up 10% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates Solar Senior Capital 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 and notable return on equity. 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 13.0%. Since the same quarter one year prior, revenues slightly increased by 8.3%. 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 SOLAR SENIOR CAPITAL LTD is currently very high, coming in at 76.74%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 32.80% significantly outperformed against the industry average.
  • Net operating cash flow has significantly increased by 474.60% to $78.70 million when compared to the same quarter last year. In addition, SOLAR SENIOR CAPITAL LTD has also vastly surpassed the industry average cash flow growth rate of 3.62%.
  • SOLAR SENIOR CAPITAL LTD's earnings per share declined by 34.8% 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 year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, SOLAR SENIOR CAPITAL LTD reported lower earnings of $1.11 versus $1.46 in the prior year. This year, the market expects an improvement in earnings ($1.39 versus $1.11).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Capital Markets industry and the overall market, SOLAR SENIOR CAPITAL LTD's return on equity is below that of both the industry average and the S&P 500.

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Pzena Investment Management

Dividend Yield: 14.60%

Pzena Investment Management (NYSE: PZN) shares currently have a dividend yield of 14.60%.

Pzena Investment Management, Inc. is a publicly owned investment manager. The company has a P/E ratio of 16.53.

The average volume for Pzena Investment Management has been 26,400 shares per day over the past 30 days. Pzena Investment Management has a market cap of $113.9 million and is part of the financial services industry. Shares are down 5.6% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates Pzena Investment Management as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, increase in net income and expanding profit margins. 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 return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Capital Markets industry and the overall market, PZENA INVESTMENT MANAGEMENT's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • PZENA INVESTMENT MANAGEMENT's earnings per share declined by 6.7% 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, PZENA INVESTMENT MANAGEMENT increased its bottom line by earning $0.52 versus $0.46 in the prior year. This year, the market expects an improvement in earnings ($0.56 versus $0.52).
  • The net income growth from the same quarter one year ago has exceeded that of the Capital Markets industry average, but is less than that of the S&P 500. The net income increased by 8.3% when compared to the same quarter one year prior, going from $2.28 million to $2.47 million.
  • Despite the weak revenue results, PZN has outperformed against the industry average of 13.0%. Since the same quarter one year prior, revenues slightly dropped by 0.7%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The gross profit margin for PZENA INVESTMENT MANAGEMENT is rather high; currently it is at 53.01%. Regardless of PZN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PZN's net profit margin of 8.64% is significantly lower than the industry average.

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