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."Tupperware Brands Dividend Yield: 4.10% Tupperware Brands (NYSE: TUP) shares currently have a dividend yield of 4.10%. 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 17.51. The average volume for Tupperware Brands has been 491,800 shares per day over the past 30 days. Tupperware Brands has a market cap of $3.3 billion and is part of the consumer non-durables industry. Shares are up 4.8% year-to-date as of the close of trading on Thursday. EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE. TheStreet Ratings rates Tupperware Brands as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins and good cash flow from operations. We feel its strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Household Durables industry and the overall market, TUPPERWARE BRANDS CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The gross profit margin for TUPPERWARE BRANDS CORP is rather high; currently it is at 69.71%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 5.07% is above that of the industry average.
- Net operating cash flow has increased to -$11.80 million or 35.51% when compared to the same quarter last year. In addition, TUPPERWARE BRANDS CORP has also vastly surpassed the industry average cash flow growth rate of -77.63%.
- TUPPERWARE BRANDS CORP's earnings per share declined by 42.1% 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, TUPPERWARE BRANDS CORP reported lower earnings of $4.21 versus $5.18 in the prior year. This year, the market expects an improvement in earnings ($4.65 versus $4.21).
- TUP, with its decline in revenue, underperformed when compared the industry average of 7.6%. Since the same quarter one year prior, revenues fell by 12.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full Tupperware Brands Ratings Report.
- MIC's revenue growth has slightly outpaced the industry average of 37.3%. Since the same quarter one year prior, revenues rose by 44.3%. 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.
- Compared to its closing price of one year ago, MIC's share price has jumped by 43.45%, exceeding the performance of the broader market during that same time frame. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Transportation Infrastructure industry and the overall market, MACQUARIE INFRASTRUCTURE CP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The gross profit margin for MACQUARIE INFRASTRUCTURE CP is rather high; currently it is at 56.70%. It has increased significantly from the same period last year.
- You can view the full Macquarie Infrastructure Ratings Report.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 49.5% when compared to the same quarter one year prior, rising from $287.00 million to $429.00 million.
- 46.65% is the gross profit margin for KINDER MORGAN 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 11.92% is above that of the industry average.
- Net operating cash flow has increased to $1,256.00 million or 12.34% when compared to the same quarter last year. In addition, KINDER MORGAN INC has also vastly surpassed the industry average cash flow growth rate of -53.28%.
- Despite the weak revenue results, KMI has outperformed against the industry average of 38.6%. Since the same quarter one year prior, revenues fell by 11.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full Kinder Morgan Ratings Report.
- Our dividend calendar.