Do you consider yourself a value investor? If so, we ran a screen looking for potentially undervalued dividend stocks you may be interested in.

We began by screening for dividend stocks: those paying dividend yields above 2% and sustainable payout ratios below 50%. We then screened for those that have outperformed the market over the last quarter, with quarterly performance above 10%.

Finally, we screened that universe for those that appear undervalued relative to the Graham Number. The Graham Number is a measure of maximum fair value created by the "godfather of value investing" Benjamin Graham.

It is based on a stock's EPS and book value per share (BVPS).

Graham Number = SQRT(22.5 x TTM EPS x MRQ BVPS)

The equation assumes that P/E should not be higher than 15 and P/BV should not be higher than 1.5. Stocks trading well below their Graham Number may be undervalued.

*For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.*

Do you think these stocks should be trading higher? Use this list as a starting point for your own analysis.

**1. AFLAC Inc. (NYSE:AFL):** Provides supplemental health and life insurance. Market cap at $24.71B, most recent closing price at $52.90. Diluted TTM earnings per share at 6.07, and a MRQ book value per share value at 34.1, implies a Graham Number fair value = sqrt(22.5*6.07*34.1) = $68.24. Based on the stock's price at $52.7, this implies a potential upside of 29.49% from current levels. Dividend yield at 2.66%, payout ratio at 21.83%. Performance over the last quarter at 11.51%.

**2. Commercial Metals Company (NYSE:CMC):** Engages in recycling, manufacturing, fabricating, and distributing steel and metal products, and related materials and services in the United States and internationally. Market cap at $1.78B, most recent closing price at $15.24. Diluted TTM earnings per share at 1.78, and a MRQ book value per share value at 10.71, implies a Graham Number fair value = sqrt(22.5*1.78*10.71) = $20.71. Based on the stock's price at $15.28, this implies a potential upside of 35.54% from current levels. Dividend yield at 3.09%, payout ratio at 26.6%. Performance over the last quarter at 16.82%.

**3. Dell Inc. (NASDAQ:DELL):** Provides integrated technology solutions in the information technology (IT) industry worldwide. Market cap at $19.01B, most recent closing price at $10.85. Diluted TTM earnings per share at 1.47, and a MRQ book value per share value at 5.86, implies a Graham Number fair value = sqrt(22.5*1.47*5.86) = $13.92. Based on the stock's price at $10.94, this implies a potential upside of 27.26% from current levels. Dividend yield at 2.93%, payout ratio at 5.33%. Performance over the last quarter at 12.55%.

**4. Huntsman Corporation (NYSE:HUN):** Engages in the manufacture and sale of differentiated organic and inorganic chemical products worldwide. Market cap at $4.02B, most recent closing price at $16.97. Diluted TTM earnings per share at 2.11, and a MRQ book value per share value at 8.79, implies a Graham Number fair value = sqrt(22.5*2.11*8.79) = $20.43. Based on the stock's price at $16.78, this implies a potential upside of 21.74% from current levels. Dividend yield at 2.38%, payout ratio at 18.9%. Performance over the last quarter at 13.23%.

**5. Kronos Worldwide Inc. (NYSE:KRO):** Engages in the production and marketing of titanium dioxide pigments in North America and Europe. Market cap at $2.33B, most recent closing price at $20.22. Diluted TTM earnings per share at 2.78, and a MRQ book value per share value at 9.63, implies a Graham Number fair value = sqrt(22.5*2.78*9.63) = $24.54. Based on the stock's price at $20.09, this implies a potential upside of 22.17% from current levels. Dividend yield at 2.99%, payout ratio at 21.60%. Performance over the last quarter at 37.32%.

**6. Lexmark International Inc. (NYSE:LXK):** Develops, manufactures, and supplies printing and imaging solutions for offices. Market cap at $1.68B, most recent closing price at $26.39. Diluted TTM earnings per share at 2.37, and a MRQ book value per share value at 20.01, implies a Graham Number fair value = sqrt(22.5*2.37*20.01) = $32.67. Based on the stock's price at $25.97, this implies a potential upside of 25.78% from current levels. Dividend yield at 4.62%, payout ratio at 45.7%. Performance over the last quarter at 21.41%.

**7. Marathon Petroleum Corporation (NYSE:MPC):** Engages in refining, transporting, and marketing petroleum products primarily in the United States and internationally. Market cap at $21.1B, most recent closing price at $62.13. Diluted TTM earnings per share at 7.36, and a MRQ book value per share value at 33.83, implies a Graham Number fair value = sqrt(22.5*7.36*33.83) = $74.85. Based on the stock's price at $62.22, this implies a potential upside of 20.3% from current levels. Dividend yield at 2.25%, payout ratio at 14.81%. Performance over the last quarter at 13.17%.

**Disclosure: **I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

**Business relationship disclosure:** Kapitall is a team of analysts. This article was written by Sabina Bhatia, one of our writers. We did not receive compensation for this article (other than from Seeking Alpha), and we have no business relationship with any company whose stock is mentioned in this article.