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."

Physicians Realty

Dividend Yield: 4.30%

Physicians Realty (NYSE: DOC) shares currently have a dividend yield of 4.30%.

Physicians Realty Trust, a self-managed healthcare real estate company, focuses on the acquisition, development, ownership, and management of healthcare properties that are leased to physicians, hospitals, and healthcare delivery systems. The company has a P/E ratio of 105.10.

The average volume for Physicians Realty has been 1,422,500 shares per day over the past 30 days. Physicians Realty has a market cap of $2.8 billion and is part of the real estate industry. Shares are up 26.3% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates Physicians Realty as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and solid stock price performance. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • DOC's very impressive revenue growth greatly exceeded the industry average of 12.1%. Since the same quarter one year prior, revenues leaped by 80.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • PHYSICIANS REALTY TR reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, PHYSICIANS REALTY TR turned its bottom line around by earning $0.14 versus -$0.19 in the prior year. This year, the market expects an improvement in earnings ($0.26 versus $0.14).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 1182.0% when compared to the same quarter one year prior, rising from -$0.46 million to $4.93 million.
  • Net operating cash flow has significantly increased by 107.17% to $20.15 million when compared to the same quarter last year. In addition, PHYSICIANS REALTY TR has also vastly surpassed the industry average cash flow growth rate of 9.08%.
  • Powered by its strong earnings growth of 500.00% and other important driving factors, this stock has surged by 30.88% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp 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 other strengths this company displays justify these higher price levels.

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Liberty Property

Dividend Yield: 4.60%

Liberty Property (NYSE: LPT) shares currently have a dividend yield of 4.60%.

Liberty Property Trust is a publicly owned real estate investment holding trust. Through its subsidiary, it provides leasing, property management, development, acquisition, and other tenant-related services for a portfolio of industrial and office properties. The company has a P/E ratio of 22.83.

The average volume for Liberty Property has been 925,000 shares per day over the past 30 days. Liberty Property has a market cap of $6.0 billion and is part of the real estate industry. Shares are up 31.9% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates Liberty Property as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, reasonable valuation levels, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • 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 Real Estate Investment Trusts (REITs) industry. The net income increased by 86.0% when compared to the same quarter one year prior, rising from $30.95 million to $57.55 million.
  • 45.95% is the gross profit margin for LIBERTY PROPERTY TRUST which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 28.82% trails the industry average.
  • Net operating cash flow has slightly increased to $96.81 million or 7.59% when compared to the same quarter last year. Despite an increase in cash flow, LIBERTY PROPERTY TRUST's average is still marginally south of the industry average growth rate of 9.08%.

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Greif

Dividend Yield: 4.20%

Greif (NYSE: GEF) shares currently have a dividend yield of 4.20%.

Greif, Inc. produces and sells industrial packaging products worldwide. The company has a P/E ratio of 55.92.

The average volume for Greif has been 255,700 shares per day over the past 30 days. Greif has a market cap of $1.9 billion and is part of the consumer non-durables industry. Shares are up 28.8% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates Greif as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, good cash flow from operations, solid stock price performance and growth in earnings per share. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

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 Containers & Packaging industry. The net income increased by 51.0% when compared to the same quarter one year prior, rising from $20.80 million to $31.40 million.
  • Net operating cash flow has significantly increased by 151.19% to $83.90 million when compared to the same quarter last year. In addition, GREIF INC has also vastly surpassed the industry average cash flow growth rate of -47.92%.
  • 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. 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.
  • GREIF INC 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, GREIF INC reported lower earnings of $1.51 versus $1.92 in the prior year. This year, the market expects an improvement in earnings ($2.30 versus $1.51).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 10.4%. Since the same quarter one year prior, revenues slightly dropped by 8.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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