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 (NYSE: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. (NYSE: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. (NYSE: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.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Business relationship disclosure: 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.