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I have searched for highly profitable companies that pay solid dividends, and that have a very low trailing and forward P/E ratio. I also looked for companies that are in a short-term, mid-term and long-term uptrend. Stocks in an uptrend are performing well and are in a buying mode.

I have elaborated a screening method, which shows stock candidates following these lines. Nonetheless, the screening method should only serve as a basis for further research. All the data for this article were taken from Yahoo Finance and finviz.com.

The screen's formula requires all stocks to comply with all following demands:

  1. The forward dividend yield is greater than 2.80%.
  2. The payout ratio is less than 70%.
  3. Trailing P/E is less than 10.
  4. Forward P/E is less than 9.
  5. Stock price is above 20-day simple moving average (short-term uptrend).
  6. Stock price is above 50-day simple moving average (mid-term uptrend).
  7. Stock price is above 200-day simple moving average (long-term uptrend).

After running this screen on May 05, 2013, I discovered the following four stocks:

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Seagate Technology Public Limited Company (NASDAQ:STX)

Seagate Technology Public Limited Company designs, manufactures, markets and sells hard disk drives for enterprise storage, client compute, and client non-compute market applications worldwide.

Seagate has an extremely low trailing P/E of 5.45 and a very low forward P/E of 7.52. The price to free cash flow for the trailing 12 months is exceptionally low at 4.83, and the price-to-sales ratio is also very low at 0.91. The forward annual dividend yield is quite high at 3.69%, and the payout ratio is only 18%. The annual rate of dividend growth over the past five years was very high at 28.24%, and over the last ten years was also very high at 29.46%.

The STX stock price is 14.26% above its 20-day simple moving average, 18.21% above its 50-day simple moving average and 31.32% above its 200-day simple moving average. That indicates a short-term, mid-term and long-term uptrend.

On May 01, Seagate reported its fiscal third quarter 2013 financial results, which beat EPS expectations by $0.10 and beat on revenues. During the fiscal third quarter, the company reported revenue of approximately $3.5 billion, gross margin of 26.9%, net income of $416 million and diluted earnings per share of $1.13. On a non-GAAP basis, which excludes the net impact of certain items, Seagate reported gross margin of 27.6%, net income of $464 million and diluted earnings per share of $1.26. The company generated $678 million in operating cash flow, repurchased three million ordinary shares for approximately $102 million and paid $379 million for the early redemption of long-term debt.

In the report, Steve Luczo, Seagate's chairman, president and chief executive officer said:

Seagate's operational results this quarter again reflect strong execution. The continued advancement of cloud, mobile and open source computing are trends that are shifting data volumes toward personal and corporate cloud environments, creating tremendous opportunities for Seagate's leading storage technology portfolio. Looking ahead, our top priorities are focused on the efficiency of our operations, extending our leadership in storage technology innovation and returning value to shareholders.

The compelling valuation metrics, the fact that the stock is in an uptrend, the rich dividend and the fact that the company consistently has raised dividend payments are all factors that make STX stock quite attractive.

STX Dividend Chart

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Chart: finviz.com

Pitney Bowes Inc (NYSE:PBI)

Pitney Bowes Inc. provides software, hardware, and services to enable physical and digital communications in the United States and internationally.

Pitney Bowes has an extremely low trailing P/E of 7.13 and a very low forward P/E of 7.93. The price to free cash flow for the trailing 12 months is quite low at 16.94, and the price-to-sales ratio is also very low at 0.63. The forward annual dividend yield is very high at 4.87%, and the payout ratio is at 69%.

The PBI stock price is 4.28% above its 20-day simple moving average, 6.33% above its 50-day simple moving average and 20.43% above its 200-day simple moving average. That indicates a short-term, mid-term and long-term uptrend.

On April 30, Pitney Bowes reported its first quarter 2013 financial results, which missed EPS expectations by $0.04 and missed on revenues.

First quarter 2013 highlights

• First quarter revenue of $1.2 billion • Year-over-year revenue growth in Production Mail and Mail Services

• Continued moderation in decline of recurring revenue streams in the SMB group

• Adjusted EPS from continuing operations of $0.42

• GAAP EPS from continuing operations of $0.34, which includes costs of $0.08 associated with the recent debt tender

• First quarter free cash flow of $107 million; GAAP cash from operations of $132 million

• Issued $425 million of 30 year bonds and retired approximately $405 million of debt originally scheduled to mature between 2014 and 2016.

• Sale of the U.S. International Mail Services (NYSE:IMS) business completed

• On April 29, 2013, the Board of Directors approved a second quarter dividend of 18.75 cents per share for the Company's common stock.

In the report, president and chief executive officer, Marc Lautenbach, commented:

We are taking a number of actions in support of the long-term health and growth of our business. While the results for the quarter were mixed, we are seeing progress in key elements of the business. We continued to experience a moderation in the decline of recurring revenue streams in our SMB group, as well as growth in both our Production Mail and Mail Services segments. Mail Services revenue grew because of increased cross-border shipments, related to the early stages of implementation of our partnership with eBay. We had weaker revenue and EBIT results than expected in our Software segment due in part to continued global economic uncertainty. We believe we have substantial opportunities in these software markets and have taken actions to capture these opportunities.

Despite the first-quarter 2013 mixed results, the very low multiples, the very rich dividend and the fact that the stock is in an uptrend -- make PBI stock quite attractive.

PBI Dividend Chart

PBI Dividend data by YCharts

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Chart: finviz.com

SLM Corporation (NASDAQ:SLM)

SLM Corporation, through its subsidiaries, originates, acquires, finances and services private education loans in the United States.

SLM Corporation has a very low trailing P/E of 8.52 and a very low forward P/E of 8.42. The PEG ratio is quite low at 1.01, and the price-to-sales ratio is at 1.46. The forward annual dividend yield is at 2.86%, and the payout ratio is only 26%. The annual rate of dividend growth over the past five years was very high at 15.7%.

The SLM stock price is 2.32% above its 20-day simple moving average, 4.90% above its 50-day simple moving average and 20.77% above its 200-day simple moving average. That indicates a short-term, mid-term and long-term uptrend.

On April 17, SLM Corporation reported its first quarter 2013 financial results. For the first-quarter 2013, GAAP net income was $346 million ($0.74 diluted earnings per share), compared with $112 million ($0.21 diluted earnings per share) for the year-ago quarter. Core earnings for the quarter were $283 million ($0.61 diluted earnings per share), compared with $284 million ($0.55 diluted earnings per share) for the year-ago quarter.

In the report, Albert L. Lord, vice chairman and CEO said:

Our recent results are good and about as expected with no surprises. I am optimistic about our prospective credit costs, though we will watch the next several months with some caution. While the economy and employment levels are still uncertain, capital markets liquidity has improved and enabled some important balance sheet structuring in the quarter. We will remain active market participants.

All these factors -- the very low multiples, the solid dividend, the fact that the company consistently has raised dividend payments and the fact that the stock is in an uptrend -- make SLM stock quite attractive.

SLM Dividend Chart

SLM Dividend data by YCharts

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Chart: finviz.com

Ford Motor Co. (NYSE:F)

Ford Motor Company engages in the development, manufacture, distribution and service of vehicles, parts and accessories worldwide.

Ford Motor has a very low trailing P/E of 9.74 and a very low forward P/E of 8.33. The PEG ratio is very low at 0.93, and the price-to-sales ratio is also very low at 0.40. The forward annual dividend yield is at 2.89%, and the payout ratio is only 14%.

The F stock price is 5.48% above its 20-day simple moving average, 6.62% above its 50-day simple moving average and 21.37% above its 200-day simple moving average. That indicates a short-term, mid-term and long-term uptrend.

On April 24, Ford Motor reported its first quarter 2013 financial results, which beat EPS expectations by $0.03 and beat on revenues.

First quarter 2013 highlights

• Strong total company pre-tax profit was $2.1 billion, or 41 cents per share, a decrease of $147 million from a year ago; 15th consecutive quarter of profitability

• Net income was $1.6 billion, or 40 cents per share, an increase of $215 million compared with a year ago

• Positive Automotive operating-related cash flow was $700 million for the quarter - the 12th consecutive quarter of positive cash flow - with strong liquidity of $34.5 billion, unchanged from year-end 2012

• Wholesale volume and total company revenue each grew about 10 percent compared with a year ago, including market share gains in North America and Asia Pacific Africa

• North America pre-tax profit was a record $2.4 billion - the highest quarterly profit since at least 2000, when the company began reflecting the region as a separate business unit - with an operating margin of 11 percent. Ford also reported a small pre-tax profit for Asia Pacific Africa, and losses in Europe and South America

• Ford Credit continued its solid performance with a first quarter pre-tax profit of $507 million

• For the full year 2013, the company's guidance remains unchanged - Ford expects another strong year, with total company pre-tax profit about equal to 2012, operating margin about equal to or lower than 2012, and Automotive operating-related cash flow higher than 2012

The compelling valuation metrics, the solid dividend, and the fact the fact that the stock is in an uptrend, are all factors that make F stock quite attractive..

F Dividend Chart

F Dividend data by YCharts

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Chart: finviz.com

STX Dividend data by YCharts

Source: 4 Solid-Yielding Stocks With Very Low P/E Ratio In An Uptrend