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A company’s cash flow is very important to consider when evaluating dividend stocks - after all, dividends are paid with cash. To rely on a company’s dividend yield, be sure their cash flows are reliable as well.

We ran a screen on dividend stocks with strong cash coverage, comparing the trailing-twelve-month operating cash flow per share to the dividend per share of the same time period. We searched these stocks for those appearing undervalued using the Graham number.

The Graham Number, created by the godfather of value investing Benjamin Graham, only requires two data points: current earnings per share and current book value per share.

The Graham Number = Square Root of (22.5) x (TTM Earnings per Share) x (MRQ Book Value per Share). This equation assumes that a stock is overvalued if P/E is over 15 or P/BV is over 1.5.

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.

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.

Do you think these stocks pay reliable dividend yields? Use this list as a starting-off point for your own analysis.

List sorted by dividend yield.

1. Meredith Corp. (NYSE:MDP): Publishing Industry. Market cap of $1.10B. Dividend yield at 4.24%, payout ratio at 27.05%. TTM operating cash flow per share at $4.68 vs. TTM dividend per share at $0.97. TTM diluted EPS at $2.78, MRQ book value per share at $17.09, Graham number at $32.70 (vs. current price at $24.13, implies a potential upside of 35.50%). The stock is a short squeeze candidate, with a short float at 32.06% (equivalent to 13.08 days of average volume).

2. Steel Dynamics Inc. (NASDAQ:STLD): Steel & Iron Industry. Market cap of $2.57B. Dividend yield at 3.41%, payout ratio at 33.0%. TTM operating cash flow per share at $1.07 vs. TTM dividend per share at $0.35. TTM diluted EPS at $1.02, MRQ book value per share at $10.41, Graham number at $15.46 (vs. current price at $11.70, implies a potential upside of 32.11%).

3. Carnival plc (NYSE:CUK): General Entertainment Industry. Market cap of $23.37B. Dividend yield at 3.40%, payout ratio at 6.73%. TTM operating cash flow per share at $4.79 vs. TTM dividend per share at $0.70. TTM diluted EPS at $2.40, MRQ book value per share at $30.12, Graham number at $40.33 (vs. current price at $29.08, implies a potential upside of 38.69%).

4. Carnival Corporation (NYSE:CCL): General Entertainment Industry. Market cap of $23.77B. Dividend yield at 3.34%, payout ratio at 29.02%. TTM operating cash flow per share at $4.77 vs. TTM dividend per share at $0.70. TTM diluted EPS at $2.40, MRQ book value per share at $30.12, Graham number at $40.33 (vs. current price at $29.76, implies a potential upside of 35.52%).

5. Huntsman Corporation (NYSE:HUN): Specialty Chemicals Industry. Market cap of $3.0B. Dividend yield at 3.21%, payout ratio at 34.04%. TTM operating cash flow per share at $1.60 vs. TTM dividend per share at $0.40. TTM diluted EPS at $1.10, MRQ book value per share at $8.76, Graham number at $14.72 (vs. current price at $12.21, implies a potential upside of 20.59%). This is a risky stock that is significantly more volatile than the overall market (beta = 2.13). Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 3.21%, current ratio at 2.08, and quick ratio at 1.29. It's been a rough couple of days for the stock, losing 8.44% over the last week.

6. BancFirst Corporation (NASDAQ:BANF): Regional Bank. Market cap of $497.63M. Dividend yield at 3.07%, payout ratio at 33.94%. TTM operating cash flow per share at $12.15 vs. TTM dividend per share at $0.98. TTM diluted EPS at $2.77, MRQ book value per share at $30.80, Graham number at $43.81 (vs. current price at $32.66, implies a potential upside of 34.15%). The stock is currently stuck in a downtrend, trading 10.31% below its SMA20, 13.48% below its SMA50, and 18.84% below its SMA200. It's been a rough couple of days for the stock, losing 6.05% over the last week.

7. Sealed Air Corporation (NYSE:SEE): Packaging & Containers Industry. Market cap of $2.83B. Dividend yield at 2.95%, payout ratio at 33.59%. TTM operating cash flow per share at $2.55 vs. TTM dividend per share at $0.52. TTM diluted EPS at $1.42, MRQ book value per share at $16.08, Graham number at $22.67 (vs. current price at $17.47, implies a potential upside of 29.74%).

8. The Washington Post Company (WPO): Education & Training Services Industry. Market cap of $2.65B. Dividend yield at 2.82%, payout ratio at 33.94%. TTM operating cash flow per share at $66.75 vs. TTM dividend per share at $9.30. TTM diluted EPS at $24.07, MRQ book value per share at $341.53, Graham number at $430.07 (vs. current price at $340.20, implies a potential upside of 26.42%). The stock is a short squeeze candidate, with a short float at 10.66% (equivalent to 15.46 days of average volume). It's been a rough couple of days for the stock, losing 8.61% over the last week.

9. Albany International Corp. (NYSE:AIN): Textile Industrial Industry. Market cap of $596.23M. Dividend yield at 2.73%, payout ratio at 30.81%. TTM operating cash flow per share at $2.89 vs. TTM dividend per share at $0.49. TTM diluted EPS at $1.59, MRQ book value per share at $15.56, Graham number at $23.59 (vs. current price at $18.70, implies a potential upside of 26.17%). The stock is a short squeeze candidate, with a short float at 8.34% (equivalent to 12.13 days of average volume).

10. Tyco International Ltd. (NYSE:TYC): Diversified Machinery Industry. Market cap of $17.97B. Dividend yield at 2.59%, payout ratio at 30.50%. TTM operating cash flow per share at $5.33 vs. TTM dividend per share at $0.99. TTM diluted EPS at $3.30, MRQ book value per share at $30.55, Graham number at $47.63 (vs. current price at $38.27, implies a potential upside of 24.45%).

11. BOK Financial Corp. (NASDAQ:BOKF): Regional Bank. Market cap of $3.06B. Dividend yield at 2.47%, payout ratio at 27.26%. TTM operating cash flow per share at $6.88 vs. TTM dividend per share at $1.03. TTM diluted EPS at $3.75, MRQ book value per share at $38.97, Graham number at $57.34 (vs. current price at $44.19, implies a potential upside of 29.76%).

12. Teva Pharmaceutical Industries Limited (NYSE:TEVA): Drug Manufacturer. Market cap of $36.48B. Dividend yield at 2.43%, payout ratio at 24.94%. TTM operating cash flow per share at $4.97 vs. TTM dividend per share at $0.88. TTM diluted EPS at $3.50, MRQ book value per share at $26.58, Graham number at $45.75 (vs. current price at $38.30, implies a potential upside of 19.45%).

13. U.S. Bancorp (NYSE:USB): Regional Bank. Market cap of $40.47B. Dividend yield at 2.38%, payout ratio at 16.75%. TTM operating cash flow per share at $5.24 vs. TTM dividend per share at $0.35. TTM diluted EPS at $2.06, MRQ book value per share at $15.50, Graham number at $26.80 (vs. current price at $21.04, implies a potential upside of 27.39%).

14. Wells Fargo & Company (NYSE:WFC): Money Center Banks Industry. Market cap of $125.24B. Dividend yield at 2.03%, payout ratio at 7.65%. TTM operating cash flow per share at $5.74 vs. TTM dividend per share at $0.34. TTM diluted EPS at $2.58, MRQ book value per share at $23.86, Graham number at $37.22 (vs. current price at $23.53, implies a potential upside of 58.17%). Might be undervalued at current levels, with a PEG ratio at 0.71, and P/FCF ratio at 4.49.

*Operating cash flow per share and dividend per share data sourced from Screener.co, BVPS and EPS data sourced from Yahoo! Finance, all other data sourced from Finviz.

Source: 14 Dividend Stocks With Strong Cash Coverage, Undervalued By Graham's Equation