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 1%. We then looked for those stocks that are going ex-dividend in the next 2 weeks.
Finally, we decided to look for stocks that are undervalued by levered free cash flow/enterprise value. This will provide a starting point for your analysis. This ratio gives us the money that the business can use to grow and pay dividends to shareholders. Any possibility of a dividend payout nowadays is looked at positively.
Is it time to do a deep dive analysis on the stocks before the ex-dividend date?
Use this list as a starting point for your own analysis.
1. FLY Leasing Limited (FLY): Operates as a global aircraft lessor. Market cap at $370.13M, most recent closing price at $13.20. Levered free cash flow at $330.26M vs. enterprise value at $2.41B (implies a LFCF/EV ratio at 13.7%). Ex-dividend date on 1/29/13. Dividend yield at 6.7%.
2. MetLife, Inc. (MET): Provides insurance, annuities, and employee benefit programs primarily in the United States, Japan, Latin America, the Asia Pacific, Europe, and the Middle East. Market cap at $40.52B, most recent closing price at $37.14. Levered free cash flow at $10.47B vs. enterprise value at $64.44B (implies a LFCF/EV ratio at 16.25%). Ex-dividend date on 2/4/13. Dividend yield at 2%.
3. Western Refining Inc. (WNR): Operates as an independent crude oil refiner and marketer of refined products in Texas, Arizona, New Mexico, Utah, Colorado, and the Mid-Atlantic region. Market cap at $2.57B, most recent closing price at $29.05. Levered free cash flow at $466.65M vs. enterprise value at $2.61B (implies a LFCF/EV ratio at 17.88%). Ex-dividend date on 1/28/13. Dividend yield at 1.7%.
*FCF data sourced from Yahoo Finance.