If you like to invest in dividend-paying stocks and you also believe in Benjamin Grahamâ€™s investment philosophy, then this may be an interesting starting point for your own analysis.

To compile this list we looked for companies with the following characteristics:

- Expected dividend per share greater than previous fiscal year dividend per share

- Trailing twelve month (TTM) profit margin greater than previous TTM profit margin

- Significantly undervalued by the Graham Number

*Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research. *

The Graham Number was considered to be the maximum price an investor should pay for a stock, according to the formula developed by Benjamin Graham.

It is calculated as follows:

Graham Number = Square Root of (22.5) x (Earnings per Share) x (Book Value per Share)

This equation is predicated on Grahamâ€™s belief that the price-to-earnings (P/EPS) ratio should be no more than 15, and the price-to-book value (P/BVPS) ratio should be no more than 1.5.

Therefore we only included companies that meet both of these criteria. As a result, the product of the two should not be more than 22.5. In other words, (P/EPS of 15) x (P/BVPS of 1.5) = 22.5.

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Considering this data, which of these stocks do you find to be most attractive?

*Diversified Electronics Industry. Market cap of $2.55B. Dividend yield at 1.47%. Current year dividend per share estimate at $0.21 vs. last year's dividend per share at $0.19 (10.53% change). Trailing twelve month net profit margin at 14.76% vs. 10.95% in the previous twelve month period. Payout ratio at 13.24%. The company's current ratio stands at 6.8. BVPS at 11.99, diluted EPS at 1.43.*

**1. AVX Corp. (NYSE:AVX):**AVX Graham number = sqrt(22.5 x 11.99 x 1.43) = $19.64. Given the current price at $14.98, this implies an upside of 31.12%. The stock has gained 13.3% over the last year.

*Investment Brokerage Industry. Market cap of $18.25B. Dividend yield at 2.06%. Current year dividend per share estimate at $5.59 vs. last year's dividend per share at $4.6 (21.52% change). Trailing twelve month net profit margin at 37.2% vs. 32.6% in the previous twelve month period. Payout ratio at 27.63%. The company's current ratio stands at 1.23. BVPS at 310.89, diluted EPS at 17.52.*

**2. CME Group Inc. (NASDAQ:CME):**CME Graham number = sqrt(22.5 x 310.89 x 17.52) = $350.08. Given the current price at $269.75, this implies an upside of 29.78%. The stock has lost 10.95% over the last year.

*: Asset Management Industry. Market cap of $1.77B. Dividend yield at 2.1%. Current year dividend per share estimate at $0.15 vs. last year's dividend per share at $0.04 (275.0% change). Trailing twelve month net profit margin at 17.03% vs. 11.34% in the previous twelve month period. Payout ratio at 4.44%. The company's current ratio stands at 3.66. BVPS at 6.48, diluted EPS at 0.92.*

**3. Janus Capital Group, Inc. (NYSE:JNS)**JNS Graham number = sqrt(22.5 x 6.48 x 0.92) = $11.58. Given the current price at $9.43, this implies an upside of 22.82%. This is a risky stock that is significantly more volatile than the overall market (beta = 2.67).

*Shipping Industry. Market cap of $494.71M. Dividend yield at 9.88%. Current year dividend per share estimate at $1.95 vs. last year's dividend per share at $1.7 (14.71% change). Trailing twelve month net profit margin at 39.22% vs. 33.55% in the previous twelve month period. Payout ratio at 116.91%. The company's current ratio stands at 6.79. BVPS at 15.24, diluted EPS at 1.76.*

4. Knightsbridge Tankers Limited (VLCCF):4. Knightsbridge Tankers Limited (VLCCF):

VLCCF Graham number = sqrt(22.5 x 15.24 x 1.76) = $24.57. Given the current price at $20.34, this implies an upside of 20.78%. The stock is a short squeeze candidate, with a short float at 12.22% (equivalent to 13.74 days of average volume).

*Data sourced from Screener.co, Yahoo! Finance and Finviz.

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