The 10 Best High-Yield Dividend Stocks for 2015 - Stock Market

[Pages:16]The 10 Best High-Yield Dividend Stocks for 2015

With so many different investments options, investors often have a difficult time deciding which direction is the best one for them to take.

Here at TheStreet, we attempt to declutter the plethora of information available and present it to our readers in a way so that they can make wise investment decisions.

When you are looking for a solid income stream and not just an implied return on your money, it is hard to beat dividends. However, according to Dave Peltier Portfolio Manager for Dividend Stock Advisor, "Not all dividends are created equal. It is not always easy to decide which ones are good investments simply by looking at their stock offerings."

According to Peltier, "Being an investor is a little like having a crystal ball. You need to be able to look at the past, present and the future. In general when you're evaluating a dividend-paying stock, the primary thought should be the viability and sustainability of the dividend itself. We look at past performance. One way is to take a look at a company's dividend history. While it's never possible to predict the future from the past, some companies have exhibited a tendency to raise their payouts annually. It's also wise to seek out yields that are trending toward the higher end of the industry and the company's historical range."

Peltier continues, "However, earnings power alone is not the ultimate gauge for dividend stocks. A lot of the same fundamental homework that goes into picking growth stocks will still apply here, but you need to add a layer of fixed income-like analysis. In other words, it's also important to look at the present, which a company's current balance sheet. While a quick glance at the ratings from the major agencies help, we're generally looking for a manageable level of debt and a solid cash position. The clearest danger to a dividend is a lack of cash flow."

Peltier warns, "A dividend stock that stops paying its dividend is of little value to anyone's portfolio. Remember that while more than 75% of the companies in the S&P 500 offer a dividend, the payout remains a luxury, not a necessity. Other bills, namely interest on debt, must be paid before investors can be rewarded with a dividend. When a company has weak cash flow, the dividend is among the first costs to be cut."

Due to the myriad of dividend stocks that an investor can choose from, TheStreet Quant Ratings team has put together a list of 10 dividend stocks that yield over 7% rated most highly by over 32 major data factors. TheStreet Quant Ratings proprietary stock algorithm identified these dividend stocks as being both fundamentally and

Number 1

technically strong with lower potential for risk. Note that these ratings can change at any time. If you would like access to real-time ratings of these stocks, you can access them by subscribing to TheStreet Quant Ratings.

Here are the 10 dividend stocks with over a 7% yield that are the most highly rated by TheStreet Quant Ratings at this time...

The 10 Best High-Yield Dividend Stocks for 2015

The Company:

#10: New Mountain Finance Corp (NMFC)

Dividend Yield:

9.05%

TheStreet Quant Rating Grade:

B (BUY)

What They Do:

New Mountain Finance Corporation operates as a closed-end, non-diversified management investment company.

Our Quantitative Briefing:

We rate NEW MOUNTAIN FINANCE CORP (NMFC) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Number 1

Get the Full 5-Page (NMFC) Ratings Report Now!

The 10 Best High-Yield Dividend Stocks for 2015

The Company:

#9: THL Credit Inc (TCRD)

Dividend Yield:

10.17%

TheStreet Quant Rating Grade:

B (BUY)

What They Do:

THL Credit, Inc. is a business development company specializing in direct and fund of fund investments. The fund seeks to invest in debt and equity securities of middle market companies.

Our Quantitative Briefing:

We rate THL CREDIT INC (TCRD) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, good cash flow from operations, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Number 1

Get the Full 5-Page (TCRD) Ratings Report Now!

The 10 Best High-Yield Dividend Stocks for 2015

The Company:

#8: Pennantpark Floating Rt Cap (PFLT)

Dividend Yield:

7.61%

TheStreet Quant Rating Grade:

B (BUY)

What They Do:

PennantPark Floating Rate Capital Ltd. is a business development company. It seeks to make secondary direct, debt, equity, and loan investments. The fund seeks to invest through floating rate loans in private or thinly traded or small market-cap, public middle market companies.

Our Quantitative Briefing:

We rate PENNANTPARK FLOATING RT CAP (PFLT) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, good cash flow from operations, expanding profit margins and increase in stock price during the past year. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Number 1

Get the Full 5-Page (PFLT) Ratings Report Now!

The 10 Best High-Yield Dividend Stocks for 2015

The Company:

#7: KKR & Co LP (KKR)

Dividend Yield:

8.04%

TheStreet Quant Rating Grade:

B (BUY)

What They Do:

KKR & Co. L.P. is a private equity and real estate investment firm specializing in direct and fund of fund investments. It specializes in acquisitions, leveraged buyouts, management buyouts, credit special situations, growth equity, mature, mezzanine, distressed, and middle market investments.

Our Quantitative Briefing:

We rate KKR & CO LP (KKR) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Number 1

Get the Full 5-Page (KKR) Ratings Report Now!

The 10 Best High-Yield Dividend Stocks for 2015

The Company:

#6: Hercules Tech Growth Cap Inc (HTGC)

Dividend Yield:

7.88%

TheStreet Quant Rating Grade:

B (BUY)

What They Do:

Hercules Technology Growth Capital, Inc., is a specialty finance company which provides debt & equity growth capital to technology-related companies at all stages, development from seed & emerging growth to expansion & established stages of development.

Our Quantitative Briefing:

We rate HERCULES TECH GROWTH CAP INC (HTGC) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. Among the primary strengths of the company is its expanding profit margins over time. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Number 1

Get the Full 5-Page (HTGC) Ratings Report Now!

The 10 Best High-Yield Dividend Stocks for 2015

The Company:

#5: Apollo Investment Corp (AINV)

Dividend Yield:

9.63%

TheStreet Quant Rating Grade:

B (BUY)

What They Do:

Apollo Investment Corporation is business development company and operates as a closed-end management investment company. The company invests in middle market companies. It provides direct equity capital, mezzanine and senior secured loans, and subordinated debt and loans.

Our Quantitative Briefing:

We rate APOLLO INVESTMENT CORP (AINV) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Number 1

Get the Full 5-Page (AINV) Ratings Report Now!

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