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 "Sell."

World Point Terminals

Dividend Yield: 9.00%

World Point Terminals (NYSE: WPT) shares currently have a dividend yield of 9.00%.

World Point Terminals, LP owns, operates, develops, and acquires terminals and other assets for the storage of light refined products, heavy refined products, and crude oil in the East Coast, Gulf Coast, and Midwest regions of the United States. The company has a P/E ratio of 13.88.

The average volume for World Point Terminals has been 31,600 shares per day over the past 30 days. World Point Terminals has a market cap of $245.1 million and is part of the energy industry. Shares are down 5.8% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates World Point Terminals as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • Looking at the price performance of WPT's shares over the past 12 months, there is not much good news to report: the stock is down 33.17%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier 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.
  • WORLD POINT TERMINALS's earnings per share declined by 20.0% in the most recent quarter compared to 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, WORLD POINT TERMINALS increased its bottom line by earning $0.98 versus $0.76 in the prior year. For the next year, the market is expecting a contraction of 5.1% in earnings ($0.93 versus $0.98).
  • 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 16.1% when compared to the same quarter one year ago, dropping from $8.33 million to $6.99 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, WORLD POINT TERMINALS's return on equity exceeds that of both the industry average and the S&P 500.
  • Despite the weak revenue results, WPT has significantly outperformed against the industry average of 36.8%. Since the same quarter one year prior, revenues slightly dropped by 0.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

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New Senior Investment Group

Dividend Yield: 11.50%

New Senior Investment Group (NYSE: SNR) shares currently have a dividend yield of 11.50%.

New Senior Investment Group Inc. (NYSE:SNR.WI) operates independently of Newcastle Investment Corp. as of November 6, 2014.

The average volume for New Senior Investment Group has been 852,600 shares per day over the past 30 days. New Senior Investment Group has a market cap of $783.1 million and is part of the real estate industry. Shares are down 11.4% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates New Senior Investment Group as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and poor profit margins.

Highlights from the ratings report include:
  • NEW SENIOR INVESTMENT GROUP's earnings per share declined by 23.5% in the most recent quarter compared to the same quarter a year ago. For the next year, the market is expecting a contraction of 181.1% in earnings (-$1.04 versus -$0.37).
  • 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 Real Estate Investment Trusts (REITs) industry. The net income has significantly decreased by 61.0% when compared to the same quarter one year ago, falling from -$11.15 million to -$17.96 million.
  • The gross profit margin for NEW SENIOR INVESTMENT GROUP is currently lower than what is desirable, coming in at 27.74%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -17.10% is significantly below that of the industry average.
  • Looking at the price performance of SNR's shares over the past 12 months, there is not much good news to report: the stock is down 47.05%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter.
  • Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, NEW SENIOR INVESTMENT GROUP's return on equity significantly trails that of both the industry average and the S&P 500.

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Transocean Partners

Dividend Yield: 19.80%

Transocean Partners (NYSE: RIGP) shares currently have a dividend yield of 19.80%.

Transocean Partners LLC, together with its subsidiaries, acquires, owns, and operates offshore drilling rigs located in the United States Gulf of Mexico. As of February 17, 2015, the company's fleet consisted of one ultra-deepwater semisubmersible rig and two ultra-deepwater drillships.

The average volume for Transocean Partners has been 146,900 shares per day over the past 30 days. Transocean Partners has a market cap of $302.5 million and is part of the energy industry. Shares are down 19.2% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates Transocean Partners as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • TRANSOCEAN PARTNERS LLC 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. For the next year, the market is expecting a contraction of 188.8% in earnings (-$1.11 versus $1.25).
  • 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 Energy Equipment & Services industry. The net income has significantly decreased by 443.6% when compared to the same quarter one year ago, falling from $39.00 million to -$134.00 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 40.53%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 876.00% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • 41.60% is the gross profit margin for TRANSOCEAN PARTNERS LLC which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, RIGP's net profit margin of -107.20% significantly underperformed when compared to the industry average.
  • Despite the weak revenue results, RIGP has outperformed against the industry average of 31.2%. Since the same quarter one year prior, revenues slightly dropped by 8.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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