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."
Continue to read at TheStreet ...