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In a previous article, I suggested that young investors should look beyond yield when choosing which stocks to add to their retirement portfolios. Having several decades between now and retirement affords investors in their 20s and 30s the opportunity to evaluate stocks based on other factors such as dividend growth, payout ratio and particularly, valuation.

I currently hold five stocks in my portfolio. All but one currently pay a dividend. I have generally tried to find stocks that I believe are fairly valued or, if possible, undervalued that offer the opportunity for capital appreciation, as well as accumulation of shares through dividend reinvestment. Obviously, I don't provide this list as a be-all and end-all list of stocks for investors to buy. Rather, I provide it as an example of how I put my own strategy to use. I hope young investors will use this list as a starting point for their own research before determining which stocks are the best fit for their own portfolios.

Note: Data and company profile information from Yahoo Finance and Google Finance

eBay Inc. (NASDAQ:EBAY) is a global technology company that enables commerce through three reportable segments: Marketplaces, Payments, and GSI. The company by providing online platforms, tools and services to help individuals and small, medium and merchants around the globe engage in online and mobile commerce and payments, the company can facilitate transactions. eBay Inc. was founded in 1995 and is headquartered in San Jose, California.

The stock currently trades at a P/E of 25.48, seemingly fairly expensive; however, the forward P/E is a much more modest 16.30, with a price/book ratio of 3.17. Over the next five years, analysts project EPS growth of 15 percent per year, compared to 12 percent for the industry, and 9 percent for the S&P 500.

eBay is the only stock in my portfolio that doesn't pay a dividend. In another article, I suggested that eBay's recent 2013 Q1 earnings call should give investors optimism for continued growth in the company. In fact, I recently used the post-earnings dip as an opportunity to increase my position in the company by 50 percent. As a pure growth play, I hope to see eBay's price appreciate substantially over the next several years.

Intel Corporation (NASDAQ:INTC) designs and manufactures integrated digital technology platforms. A platform consists of a microprocessor and chipset. The company sells these platforms primarily to original equipment manufacturers (OEMs), original design manufacturers (ODMs), and industrial and communications equipment manufacturers in the computing and communications industries. The company's platforms are used in a range of applications, such as personal computers (including Ultrabook systems), data centers, tablets, smartphones, automobiles, automated factory systems and medical devices. The company also develops and sells software and services primarily focused on security and technology integration. Intel Corporation was founded in 1968 and is based in Santa Clara, California.

INTC trades at a P/E of 11.68, with a forward P/E of 11.51 and a price/book ratio of 2.21. Analysts project 11 percent EPS growth per year over the next five years. The company offers a 3.85 percent dividend yield on a 45 percent payout ratio. Over the last five years, the dividend has grown 76.9 percent, from $0.52 to $0.90, with an average increase of 12.1 percent.

I've taken a 6.3 percent hit on the price of INTC since I originally opened my position last August. However, with dividends reinvested, my loss becomes 4.2 percent. With a safe yield of nearly 4 percent, I am content to sit on my position and let the shares accumulate while I wait to recoup my losses.

General Electric Company (NYSE:GE) is a diversified technology and financial services company. The products and services of the company range from aircraft engines, power generation, water processing, and household appliances to medical imaging, business and consumer financing and industrial products. It serves customers in more than 100 countries. Its segments include Energy Infrastructure, Aviation, Healthcare, Transportation, Home & Business Solutions and GE Capital. The company was founded in 1892 and is headquartered in Fairfield, Connecticut.

GE currently trades at a P/E of 15.93, with a forward P/E of 11.62 and a price/book ratio of 1.79. Analysts are projecting 11 percent EPS growth per year over the next five years. The company offers a 3.53 percent dividend yield on a 56 percent payout ratio. GE cut its dividend during the financial crisis; however, since bottoming at $0.40, the dividend has grown 90 percent to $0.76, with an average increase of 13.8 percent during that time.

I've taken an ugly 10 percent drop since I purchased GE a little more than a month ago. This is due to the rather dour tone of the earnings release last week. However, GE has its hands in just about every sector of industry, and is becoming a huge player in the booming oil and gas services industry. With its generous dividend, which will almost assuredly grow further, I envision accumulating shares of GE as a core holding in my portfolio for many years to come.

National-Oilwell Varco, Inc. (NYSE:NOV) provides equipment and components for oil and gas drilling and production; oilfield services; and supply chain integration services to the upstream oil and gas industry worldwide. The company operates through three segments. Its Rig Technology segment designs, manufactures, sells and services complete systems for the drilling, completion, and servicing of oil and gas wells. Its Petroleum Services & Supplies segment provides a variety of consumable goods and services used to drill, complete, remediate and workover oil and gas wells and service drill pipe, tubing, casing, flowlines and other oilfield tubular goods. Its Distribution & Transmission segment provides maintenance, repair and operating supplies and spare parts to drill site and production locations worldwide. The company was founded in 1862 and is headquartered in Houston, Texas.

NOV currently trades at a P/E of 11.36, with a forward P/E of 9.65 and a price/book ratio of 1.37. Analysts project 14 percent growth in EPS over the next five years. The company offers a 0.8 percent dividend yield on a 9 percent payout ratio. NOV has paid a dividend since 2010 Q1, and has increased the payout by 30 percent since that time, with a 9.1 percent average increase.

NOV is a company I picked up because I believe it is very much undervalued, though I unfortunately didn't find the bottom, and have seen a nearly 4 percent drop in price since my purchase a month ago. With solid financials and a nearly 60 percent share of the oil and gas service market, I am optimistic that NOV will eventually provide me with some nice capital appreciation.

Occidental Petroleum Corporation (NYSE:OXY) engages in the exploration and production of oil and gas properties in the United States and internationally. The company operates in three segments: Oil and Gas; Chemical; and Midstream, Marketing and Other. The oil and gas segment explores for, develops and produces oil and condensate, natural gas liquids and natural gas. The chemical segment (OxyChem) mainly manufactures and markets basic chemicals and vinyls. The midstream, marketing and other segment (midstream and marketing) gathers, treats, processes, transports, stores, purchases and markets oil, condensate, natural gas liquids , natural gas, carbon dioxide (CO2) and power. The company was founded in 1920 and is headquartered in Los Angeles, California.

OXY currently trades at a P/E of 14.42, with a forward P/E of 10.83 and a price/book ratio of 1.62. Analysts project 6 percent growth in EPS over the next give years. The company offers a 3.13 percent yield on a 45 percent payout ratio. Over the last five years, the dividend has increased 156 percent, with a 17.2 percent average increase over that time.

OXY is my most recent purchase and is another company that I believe is undervalued. Boardroom turmoil, as well as fluctuating oil prices have the stock trading near the middle of its 52-week range. The average analyst one-year price target is $99.90. OXY might not be a long-term holding in my portfolio if those estimates are realized; but I will be patient and accumulate shares as long as the dividend remains generous.

Conclusion: I stated in my previous article that younger investors should utilize many factors in determining which stocks to add to their portfolios. Dividend yield should certainly be one of these factors, but definitely not the only one. High yields are nice, to be sure; but price appreciation is nice, as well, and gives investors additional capital to purchase income stocks years down the road.

Source: My 'Young Investor' Portfolio And Why It Works For Me