Buy These Top 3 Buy-Rated Dividend Stocks Today: RHP, OAK, O

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."

Ryman Hospitality Properties

Dividend Yield: 4.70%

Ryman Hospitality Properties (NYSE: RHP) shares currently have a dividend yield of 4.70%.

Ryman Hospitality Properties, Inc. owns and operates hotels in the United States. The company has a P/E ratio of 28.32.

The average volume for Ryman Hospitality Properties has been 364,400 shares per day over the past 30 days. Ryman Hospitality Properties has a market cap of $2.8 billion and is part of the real estate industry. Shares are up 4.2% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates Ryman Hospitality Properties as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 8.4%. Since the same quarter one year prior, revenues slightly increased by 2.7%. 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 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 Real Estate Investment Trusts (REITs) industry and the overall market, RYMAN HOSPITALITY PPTYS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • 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. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • RYMAN HOSPITALITY PPTYS INC 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. 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, RYMAN HOSPITALITY PPTYS INC increased its bottom line by earning $2.16 versus $1.77 in the prior year. This year, the market expects an improvement in earnings ($2.17 versus $2.16).
  • The gross profit margin for RYMAN HOSPITALITY PPTYS INC is rather low; currently it is at 16.31%. Regardless of RHP's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, RHP's net profit margin of 1.76% is significantly lower than the industry average.

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Oaktree Capital Group

Dividend Yield: 4.80%

Oaktree Capital Group (NYSE: OAK) shares currently have a dividend yield of 4.80%.

Oaktree Capital Group, LLC operates as a global investment management firm that focuses on alternative markets. The company has a P/E ratio of 21.10.

The average volume for Oaktree Capital Group has been 189,800 shares per day over the past 30 days. Oaktree Capital Group has a market cap of $2.6 billion and is part of the financial services industry. Shares are up 2.6% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates Oaktree Capital Group as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year and notable return on equity. 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 revenue growth greatly exceeded the industry average of 5.7%. Since the same quarter one year prior, revenues rose by 39.8%. 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.
  • OAKTREE CAPITAL GROUP LLC's earnings per share declined by 34.6% 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, OAKTREE CAPITAL GROUP LLC reported lower earnings of $3.01 versus $6.43 in the prior year. This year, the market expects an improvement in earnings ($3.20 versus $3.01).
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Capital Markets industry and the overall market, OAKTREE CAPITAL GROUP LLC's return on equity exceeds that of both the industry average and the S&P 500.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • Net operating cash flow has significantly decreased to -$1,897.86 million or 92.81% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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Realty Income

Dividend Yield: 5.10%

Realty Income (NYSE: O) shares currently have a dividend yield of 5.10%.

Realty Income Corporation is a publicly traded real estate investment trust. It invests in the real estate markets of the United States. The firm makes investments in commercial real estate. Realty Income Corporation was founded in 1969 and is based in Escondido, California. The company has a P/E ratio of 42.16.

The average volume for Realty Income has been 2,515,900 shares per day over the past 30 days. Realty Income has a market cap of $10.5 billion and is part of the real estate industry. Shares are down 5.5% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates Realty Income 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, compelling growth in net income and increase in stock price during the past year. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • O's revenue growth has slightly outpaced the industry average of 8.4%. Since the same quarter one year prior, revenues rose by 11.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • 48.57% is the gross profit margin for REALTY INCOME CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 27.24% is above that of the industry average.
  • Net operating cash flow has slightly increased to $117.85 million or 3.20% when compared to the same quarter last year. In addition, REALTY INCOME CORP has also modestly surpassed the industry average cash flow growth rate of 0.89%.
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Real Estate Investment Trusts (REITs) industry average. The net income increased by 16.6% when compared to the same quarter one year prior, going from $57.66 million to $67.26 million.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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