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If you're looking for dividend stocks with rising cash flows, the following list might offer a good starting point.

To compile this list, we started with a universe of divided stocks with the following characteristics:

  • Declining payout ratios, with TTM payput ratio below 35%
  • Rising dividend per share payouts
  • Rising operating cash flows relative to revenues

To narrow down the list, we focused on the most undervalued names by comparing the current price to analyst target price (used as a proxy for fair value).

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

Analysts seem to think these dividend stocks are undervalued, especially when you consider the rising dividend payouts that are backed by rising cashflows. What do you think?

For the top three companies, we'll also include visualizations of key data points.

1. Randgold Resources Ltd. (NASDAQ:GOLD): Gold Industry, dividend yield of 0.25%. Current price at $79.46 vs. avg. analyst target price at $108.51 (implies a potential upside of 36.56%). Current year dividend per share estimate at $0.318 vs. prior year dividend per share at $0.2 (increase of 59.0%). TTM operating cash flow / revenue at 0.318 vs. the three year average at 0.202.

2. Republic Bancorp, Inc. (NASDAQ:RBCAA): Regional Bank, dividend yield of 3.25%. Current price at $19.15 vs. avg. analyst target price at $26 (implies a potential upside of 35.77%). Current year dividend per share estimate at $0.593 vs. prior year dividend per share at $0.561 (increase of 5.7%). TTM operating cash flow / revenue at 0.555 vs. the three year average at 0.395.

3. Susquehanna Bancshares, Inc. (NASDAQ:SUSQ): Regional Bank, dividend yield of 1.05%. Current price at $7.74 vs. avg. analyst target price at $10.5 (implies a potential upside of 35.66%). Current year dividend per share estimate at $0.0725 vs. prior year dividend per share at $0.04 (increase of 81.25%). TTM operating cash flow / revenue at 0.697 vs. the three year average at 0.210.

4. Visa Inc. (NYSE:V): Business Services Industry, dividend yield of 0.82%. Current price at $73.6 vs. avg. analyst target price at $97.71 (implies a potential upside of 32.76%). Current year dividend per share estimate at $0.5789 vs. prior year dividend per share at $0.5 (increase of 15.78%). TTM operating cash flow / revenue at 0.431 vs. the three year average at 0.197.

5. Wells Fargo Company (NYSE:WFC): Money Center Banks Industry, dividend yield of 1.76%. Current price at $27.55 vs. avg. analyst target price at $36.06 (implies a potential upside of 30.89%). Current year dividend per share estimate at $0.4785 vs. prior year dividend per share at $0.2 (increase of 139.25%). TTM operating cash flow / revenue at 0.322 vs. the three year average at 0.239.

6. Columbia Banking System, Inc. (NASDAQ:COLB): Savings & Loans Industry, dividend yield of 1.2%. Current price at $16.95 vs. avg. analyst target price at $22 (implies a potential upside of 29.79%). Current year dividend per share estimate at $0.1767 vs. prior year dividend per share at $0.04 (increase of 341.75%). TTM operating cash flow / revenue at 0.560 vs. the three year average at 0.374.

7. Magna International Inc. (NYSE:MGA): Auto Parts Industry, dividend yield of 2.%. Current price at $49.87 vs. avg. analyst target price at $64.37 (implies a potential upside of 29.08%). Current year dividend per share estimate at $0.7829 vs. prior year dividend per share at $0.42 (increase of 86.4%). TTM operating cash flow / revenue at 0.067 vs. the three year average at 0.05.

8. Joy Global Inc. (JOYG): Farm & Construction Machinery Industry, dividend yield of 0.81%. Current price at $86.64 vs. avg. analyst target price at $111.29 (implies a potential upside of 28.45%). Current year dividend per share estimate at $0.7141 vs. prior year dividend per share at $0.7 (increase of 2.01%). TTM operating cash flow / revenue at 0.174 vs. the three year average at 0.15.

9. Starwood Hotels and Resorts Worldwide, Inc (NYSE:HOT): Lodging Industry, dividend yield of 0.56%. Current price at $53 vs. avg. analyst target price at $67.65 (implies a potential upside of 27.64%). Current year dividend per share estimate at $0.3157 vs. prior year dividend per share at $0.3 (increase of 5.23%). TTM operating cash flow / revenue at 0.143 vs. the three year average at 0.121.

*Data sourced from Screener.co

Source: 9 Undervalued Dividend Stocks With Rising Payouts, Cash Flows