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 "Hold."

Statoil ASA

Dividend Yield: 5.00%

Statoil ASA (NYSE: STO) shares currently have a dividend yield of 5.00%.

Statoil ASA, an energy company, explores for, produces, transports, refines, and markets petroleum and petroleum-derived products, and other forms of energy in Norway and internationally. The company has a P/E ratio of 5.78.

The average volume for Statoil ASA has been 2,690,900 shares per day over the past 30 days. Statoil ASA has a market cap of $55.7 billion and is part of the energy industry. Shares are up 27% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates Statoil ASA as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, impressive record of earnings per share growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

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 113.8% when compared to the same quarter one year prior, rising from -$4,409.23 million to $607.00 million.
  • STATOIL ASA reported significant earnings per share improvement 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, STATOIL ASA swung to a loss, reporting -$1.33 versus $0.92 in the prior year. This year, the market expects an improvement in earnings ($0.43 versus -$1.33).
  • After a year of stock price fluctuations, the net result is that STO's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
  • Net operating cash flow has decreased to $2,205.00 million or 38.99% when compared to the same quarter last year. Despite a decrease in cash flow STATOIL ASA is still fairing well by exceeding its industry average cash flow growth rate of -49.80%.

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Royal Bank of Canada

Dividend Yield: 4.10%

Royal Bank of Canada (NYSE: RY) shares currently have a dividend yield of 4.10%.

Royal Bank of Canada, together with its subsidiaries, operates as a diversified financial service company worldwide. The company operates in five segments: Personal & Commercial Banking; Wealth Management; Insurance; Investor & Treasury Services; and Capital Markets. The company has a P/E ratio of 11.52.

The average volume for Royal Bank of Canada has been 1,161,000 shares per day over the past 30 days. Royal Bank of Canada has a market cap of $90.8 billion and is part of the banking industry. Shares are up 15.6% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates Royal Bank of Canada as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and good cash flow from operations. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:
  • RY's revenue growth has slightly outpaced the industry average of 0.0%. Since the same quarter one year prior, revenues slightly increased by 7.3%. 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 net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Commercial Banks industry average. The net income increased by 3.5% when compared to the same quarter one year prior, going from $2,473.00 million to $2,560.00 million.
  • The gross profit margin for ROYAL BANK OF CANADA is currently very high, coming in at 76.62%. Regardless of RY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 22.33% trails the industry average.
  • After a year of stock price fluctuations, the net result is that RY's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • 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 Commercial Banks industry and the overall market, ROYAL BANK OF CANADA's return on equity exceeds that of both the industry average and the S&P 500.

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Banco Santander Chile

Dividend Yield: 5.40%

Banco Santander Chile (NYSE: BSAC) shares currently have a dividend yield of 5.40%.

Banco Santander-Chile provides commercial and retail banking products and services in Chile. The company operates through Retail Banking, Middle-market, and Global Corporate Banking segments. The company has a P/E ratio of 0.01.

The average volume for Banco Santander Chile has been 442,400 shares per day over the past 30 days. Banco Santander Chile has a market cap of $9.4 billion and is part of the banking industry. Shares are up 14.6% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates Banco Santander Chile as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including premium valuation and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 0.0%. Since the same quarter one year prior, revenues rose by 15.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 22.9% when compared to the same quarter one year prior, going from $152.38 million to $187.28 million.
  • BANCO SANTANDER-CHILE has improved earnings per share by 25.0% 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, BANCO SANTANDER-CHILE reported lower earnings of $1.34 versus $1.93 in the prior year. This year, the market expects an improvement in earnings ($1.51 versus $1.34).
  • After a year of stock price fluctuations, the net result is that BSAC's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.

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