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."

Cedar Fair

Dividend Yield: 5.50%

Cedar Fair (NYSE: FUN) shares currently have a dividend yield of 5.50%.

Cedar Fair, L.P. owns and operates amusement and water parks, and hotels in the United States and Canada. The company operates approximately 11 amusement parks, 3 outdoor water parks, 1 indoor water park, and 5 hotels. The company has a P/E ratio of 26.04.

The average volume for Cedar Fair has been 177,300 shares per day over the past 30 days. Cedar Fair has a market cap of $3.1 billion and is part of the leisure industry. Shares are up 12.9% year-to-date as of the close of trading on Wednesday.

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 Cedar Fair as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, increase in net income, growth in earnings per share and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • FUN's revenue growth has slightly outpaced the industry average of 4.0%. Since the same quarter one year prior, revenues slightly increased by 4.0%. Growth in the company's revenue appears to have helped boost the 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. Although other factors naturally played a role, the company's strong earnings growth was key. 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.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 31.2% when compared to the same quarter one year prior, rising from $43.90 million to $57.58 million.
  • CEDAR FAIR -LP has improved earnings per share by 29.1% 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, CEDAR FAIR -LP reported lower earnings of $1.86 versus $1.94 in the prior year. This year, the market expects an improvement in earnings ($2.83 versus $1.86).
  • 49.54% is the gross profit margin for CEDAR FAIR -LP which we consider to be strong. Regardless of FUN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, FUN's net profit margin of 15.25% compares favorably to the industry average.

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.

Diamondrock Hospitality

Dividend Yield: 4.30%

Diamondrock Hospitality (NYSE: DRH) shares currently have a dividend yield of 4.30%.

DiamondRock Hospitality Company, a lodging focused real estate company, owns premium hotels and resorts in North America. The company has a P/E ratio of 15.97.

The average volume for Diamondrock Hospitality has been 2,307,200 shares per day over the past 30 days. Diamondrock Hospitality has a market cap of $2.3 billion and is part of the real estate industry. Shares are down 23.1% year-to-date as of the close of trading on Wednesday.

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 Diamondrock Hospitality as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations 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:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.7%. Since the same quarter one year prior, revenues slightly increased by 8.2%. 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 $65.54 million or 19.34% when compared to the same quarter last year. In addition, DIAMONDROCK HOSPITALITY CO has also modestly surpassed the industry average cash flow growth rate of 15.97%.
  • 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 Real Estate Investment Trusts (REITs) industry and the overall market, DIAMONDROCK HOSPITALITY CO's return on equity is below that of both the industry average and the S&P 500.
  • DIAMONDROCK HOSPITALITY CO 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. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, DIAMONDROCK HOSPITALITY CO increased its bottom line by earning $0.82 versus $0.12 in the prior year. For the next year, the market is expecting a contraction of 45.5% in earnings ($0.45 versus $0.82).

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.

Buckeye Partners

Dividend Yield: 6.60%

Buckeye Partners (NYSE: BPL) shares currently have a dividend yield of 6.60%.

Buckeye Partners, L.P. owns and operates liquid petroleum products pipeline systems in the United States. The company operates through four segments: Pipelines & Terminals, Global Marine Terminals, Merchant Services, and Development & Logistics. The company has a P/E ratio of 23.43.

The average volume for Buckeye Partners has been 453,000 shares per day over the past 30 days. Buckeye Partners has a market cap of $9.0 billion and is part of the energy industry. Shares are down 7.8% year-to-date as of the close of trading on Wednesday.

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 Buckeye Partners as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, reasonable valuation levels and growth in earnings per share. We feel its 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:
  • 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 297.8% when compared to the same quarter one year prior, rising from $23.02 million to $91.58 million.
  • BUCKEYE PARTNERS LP has improved earnings per share by 34.0% 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, BUCKEYE PARTNERS LP reported lower earnings of $2.79 versus $3.23 in the prior year. This year, the market expects an improvement in earnings ($3.55 versus $2.79).
  • Along with the very weak revenue results, BPL underperformed when compared to the industry average of 34.5%. Since the same quarter one year prior, revenues plummeted by 56.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The gross profit margin for BUCKEYE PARTNERS LP is currently lower than what is desirable, coming in at 25.97%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, BPL's net profit margin of 11.49% compares favorably to the industry average.

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.

Other helpful dividend tools from TheStreet: