12 Undervalued Companies Boosting Their Dividends

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 |  Includes: AFG, AFSI, BG, INTC, NATL, NEU, PRE, RBCAA, SAFM, SCL, TJX, UNM
by: Kapitall

The following is a list of undervalued dividend stocks, as defined by the Price to Earnings Growth (NYSE:PEG) ratio. All of the stocks mentioned below have PEG ratios below 1.0, which usually signal undervalued conditions.

In addition, all of these stocks have increased their quarterly dividend payouts over the last three years.

This list might offer an interesting starting point for value-oriented dividend investors.

Dividend histories sourced from AOL Money, PEG ratios and short float data sourced from Finviz.

Interactive Chart: Press Play to compare analyst ratings for the top 5 stocks mentioned below. (Analyst ratings sourced from Zacks)


The list has been sorted by the average change in dividend payments.

1. NewMarket Corp. (NYSE:NEU): Specialty Chemicals Industry. Market cap of $1.78B. Dividend yield at 1.41%, with PEG ratio at 0.71. Oct 2008 dividend per share at $0.20, Oct 2009 dividend increased to $0.38, and Oct 2010 dividend increased to $0.44. Short float at 6.56%, which implies a short ratio of 10.4 days. The stock has gained 14% over the last year.

2. AmTrust Financial Services, Inc. (NASDAQ:AFSI): Property & Casualty Insurance Industry. Market cap of $1.03B. Dividend yield at 1.84%, with PEG ratio at 0.7. Nov 2008 dividend per share at $0.05, Nov 2009 dividend increased to $0.06, and Nov 2010 dividend increased to $0.08. Short float at 7.12%, which implies a short ratio of 12.8 days. The stock has gained 48.04% over the last year.

3. The TJX Companies, Inc. (NYSE:TJX): Department Stores Industry. Market cap of $17.46B. Dividend yield at 1.36%, with PEG ratio at 0.94. Dec 2008 dividend per share at $0.11, Dec 2009 dividend increased to $0.12, and Nov 2010 dividend increased to $0.15. Short float at 2.16%, which implies a short ratio of 2.5 days. The stock has gained 19.54% over the last year.

4. National Interstate Corporation (NASDAQ:NATL): Property & Casualty Insurance Industry. Market cap of $438.01M. Dividend yield at 1.42%, with PEG ratio at 0.9. Oct 2008 dividend per share at $0.06, Nov 2009 dividend increased to $0.07, and Nov 2010 dividend increased to $0.08. Short float at 1.32%, which implies a short ratio of 17.75 days. The stock has gained 28.98% over the last year.

5. American Financial Group Inc. (NYSE:AFG): Property & Casualty Insurance Industry. Market cap of $3.51B. Dividend yield at 2.%, with PEG ratio at 0.81. Oct 2008 dividend per share at $0.13, Oct 2009 dividend increased to $0.13, and Oct 2010 dividend increased to $0.16. Short float at 0.71%, which implies a short ratio of 1.57 days. The stock has gained 39.18% over the last year.

6. Intel Corporation (NASDAQ:INTC): Semiconductor Industry. Market cap of $119.93B. Dividend yield at 3.35%, with PEG ratio at 0.95. Jan 2009 dividend per share at $0.14, Jan 2010 dividend increased to $0.16, and Nov 2010 dividend increased to $0.18. Short float at 1.62%, which implies a short ratio of 1.51 days. The stock has gained 11.4% over the last year.

7. Unum Group (NYSE:UNM): Accident & Health Insurance Industry. Market cap of $7.6B. Dividend yield at 1.54%, with PEG ratio at 0.75. Oct 2008 dividend per share at $0.08, Oct 2009 dividend increased to $0.08, and Oct 2010 dividend increased to $0.09. Short float at 1.98%, which implies a short ratio of 2.41 days. The stock has gained 27.33% over the last year.

8. Sanderson Farms, Inc. (NASDAQ:SAFM): Meat Products Industry. Market cap of $966.M. Dividend yield at 1.6%, with PEG ratio at 0.72. Sep 2008 dividend per share at $0.14, Sep 2009 dividend increased to $0.15, and Sep 2010 dividend increased to $0.17. Short float at 7.42%, which implies a short ratio of 4.99 days. The stock has gained 2.73% over the last year.

9. Bunge Ltd. (NYSE:BG): Farm Products Industry. Market cap of $9.06B. Dividend yield at 1.47%, with PEG ratio at 0.5. Oct 2008 dividend per share at $0.19, Oct 2009 dividend increased to $0.21, and Aug 2010 dividend increased to $0.23. Short float at 7.06%, which implies a short ratio of 8.24 days. The stock has gained 2.12% over the last year.

10. PartnerRe Ltd. (NYSE:PRE): Property & Casualty Insurance Industry. Market cap of $5.97B. Dividend yield at 2.75%, with PEG ratio at 0.71. Nov 2008 dividend per share at $0.46, Oct 2009 dividend increased to $0.47, and Oct 2010 dividend increased to $0.55. Short float at 3.1%, which implies a short ratio of 6.05 days. The stock has gained 8.3% over the last year.

11. Stepan Company (NYSE:SCL): Cleaning Products Industry. Market cap of $731.84M. Dividend yield at 1.43%, with PEG ratio at 0.82. Oct 2008 dividend per share at $0.22, Oct 2009 dividend increased to $0.24, and Oct 2010 dividend increased to $0.26. Short float at 7.48%, which implies a short ratio of 15.89 days. The stock has gained 15.7% over the last year.

12. Republic Bancorp Inc. (NASDAQ:RBCAA): Regional Bank. Market cap of $476.8M. Dividend yield at 2.51%, with PEG ratio at 0.74. Nov 2008 dividend per share at $0.12, Nov 2009 dividend increased to $0.13, and Nov 2010 dividend increased to $0.14. Short float at 7.45%, which implies a short ratio of 28.49 days. The stock has gained 22.16% over the last year.

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