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Getting a discount of 10%, 20% or even more is awesome. When it is on a big ticket item like a automobile, there are a lot of dollars to be saved and people have been known to drive great distances to receive the discount. Everyone loves a sale!

Well, maybe not everyone. When stocks go on sale it seems to depress a large number of market participants. However, for those of us that like buying stocks at a discount, a market pullback provides us a little relief.

My fair value model was constructed back in 2007 at a time many stocks had already fallen from grace. It was designed to focus on only the best companies. I took an extremely conservative stance with my model. Ultimately, determining fair value requires the investor to accurately forecast free cash flow, dividend growth rates and other metrics on a forward looking basis, which is no simple task.

This week, I screened my dividend growth stocks database for select stocks trading at a double-digit discount. The results are presented below:

McDonald's Corporation (NYSE:MCD) is the largest fast-food restaurant company in the world, with about 33,700 restaurants in 119 countries. The company has paid a cash dividend to shareholders every year since 1969 and has increased its dividend payments for 40 consecutive years.
Yield: 3.1% | Discount: 11.3%

TECO Energy Inc. (NYSE:TE) owns Tampa Electric Co., which serves the Tampa Bay region in west central Florida and has significant diversified operations related to its core business. The company has paid a cash dividend to shareholders every year since 1976 and has increased its dividend payments for 36 consecutive years.
Yield: 5.1% | Discount: 15.8%

Exxon Mobil Corp. (NYSE:XOM), formed through the merger of Exxon and Mobil in late 1999, is the world's largest publicly owned integrated oil company. The company has paid a cash dividend to shareholders every year since 1882 and has increased its dividend payments for 30 consecutive years.
Yield: 2.6% | Discount: 16.1%

Royal Gold, Inc. (NASDAQ:RGLD) acquires, manages precious metals royalties; seeks to acquire existing royalties or to finance projects in/near production in exchange for royalty interests. The company has paid a cash dividend to shareholders every year since 2000 and has increased its dividend payments for 20 consecutive years.
Yield: 1.2% | Discount: 17.8%

Aflac Incorporated (NYSE:AFL) provides supplemental health and life insurance in Japan (80% of earnings) and the U.S. Products are marketed at work sites and help fill gaps in primary coverage. The company has paid a cash dividend to shareholders every year since 1973 and has increased its dividend payments for 30 consecutive years.
Yield: 2.8% | Discount: 18.4%

Darden Restaurant Inc. (NYSE:DRI) operates the Red Lobster, Olive Garden, Bahama Breeze, Seasons 52, LongHorn Steakhouse and Capital Grille chains. The company has paid a cash dividend to shareholders every year since 1995 and has increased its dividend payments for 8 consecutive years.
Yield: 4.2% | Discount: 20.1%

ConocoPhillips (NYSE:COP) is one of the largest independent oil and gas exploration and production (E&P) companies in the world, COP spun off its downstream assets in May 2012. The company has paid a cash dividend to shareholders every year since 1934 and has increased its dividend payments for 12 consecutive years.
Yield: 4.5% | Discount: 22.1%

Southside Bancshares Inc. (NASDAQ:SBSI) owns Southside Bank, which primarily provides financial services to individuals, businesses, municipal entities, and non-profit organizations. The company has paid a cash dividend to shareholders every year since 1969 and has increased its dividend payments for 17 consecutive years.
Yield: 3.7% | Discount: 23.7%

John Wiley & Sons (NYSE:JW.A) produces print and electronic products, providing content and solutions to customers worldwide. The company has paid a cash dividend to shareholders every year since 1982 and has increased its dividend payments for 19 consecutive years.
Yield: 1.8% | Discount: 31.6%

As with past screens, the data presented above is in its raw form. Some of the companies would be disqualified for low yields and/or poor dividend fundamentals. However, some of the others may be worth additional due diligence.

My database, D4L-Data, is an Open Office spreadsheet containing more than 20 columns of information on the 220+ companies that I track. The data is sortable and has built-in buttons and macros to make it easy to use. Companies included in the list are those that have had a history of dividend growth. The D4L-Data spreadsheet is a part of D4L-Premium Services and is updated each Saturday for subscribers.

Disclosure: Long MCD, AFL, COP in my Dividend Growth Portfolio and TE in my High-Yield Portfolio. See a list of all my Dividend Growth holdings here.

Source: 9 Dividend Stocks Trading At A Double-Digit Discount