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In the search for potentially undervalued stocks, we ran a screen based on the theoretical assumption that if P/E is equal to a constant K, growth in EPS estimates should be matched by proportionate growth in price. When they don’t match up, a mispricing may have occurred.

We screened “dividend champions,” i.e. stocks that have consistently raised their dividend for the past 25 years, for those exhibiting this trend.

‪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 the market is undervaluing these stocks? Use this list as a starting-off point for your own analysis.

List sorted alphabetically.

1. Automatic Data Processing, Inc. (NASDAQ:ADP): Provides technology-based outsourcing solutions to employers, and vehicle retailers and manufacturers worldwide. Dividend yield at 2.9%. The EPS estimate for the company's current year increased from 2.74 to 2.75 over the last 30 days, an increase of 0.36%. This increase came during a time when the stock price changed by 0.12% (from $49.6 to $49.66 over the last 30 days). The stock's short float is at 1.11%, which is much lower than market averages.

2. AFLAC Inc. (NYSE:AFL): Provides supplemental health and life insurance. Dividend yield at 3.27%. The EPS estimate for the company's current year increased from 6.26 to 6.29 over the last 30 days, an increase of 0.48%. This increase came during a time when the stock price changed by -17.68% (from $44.57 to $36.69 over the last 30 days). Short-sellers have been avoiding the stock, with only 1.36% of the company's shares being shorted. It's also worth pointing out that the company's PEG ratio seems to be signaling undervalued conditions (PEG ratio at 0.82).

3. American States Water Company (NYSE:AWR): Provides water, electric, and contracted services in the United States. Dividend yield at 3.2%. The EPS estimate for the company's current year increased from 2.03 to 2.13 over the last 30 days, an increase of 4.93%. This increase came during a time when the stock price changed by 3.64% (from $33.8 to $35.03 over the last 30 days). The stock is currently in an uptrend, trading above short-term and long-term moving averages.

4. The Chubb Corporation (NYSE:CB): Provides property and casualty insurance to businesses and individuals. Dividend yield at 2.53%. The EPS estimate for the company's current year increased from 5.66 to 5.69 over the last 30 days, an increase of 0.53%. This increase came during a time when the stock price changed by -0.48% (from $61.92 to $61.62 over the last 30 days). The stock is currently in an uptrend, trading above short-term and long-term moving averages.

5. Cincinnati Financial Corp. (NASDAQ:CINF): Engages in the property casualty insurance business in the United States. Dividend yield at 5.87%. The EPS estimate for the company's current year increased from 0.55 to 0.6 over the last 30 days, an increase of 9.09%. This increase came during a time when the stock price changed by 3.28% (from $26.55 to $27.42 over the last 30 days).

6. Clorox Corporation (NYSE:CLX): Clorox Corporation manufactures and markets consumer and institutional products in the United States and internationally. Dividend yield at 3.48%. The EPS estimate for the company's current year increased from 4.06 to 4.07 over the last 30 days, an increase of 0.25%. This increase came during a time when the stock price changed by -1.82% (from $70.29 to $69.01 over the last 30 days). It's been a good couple of weeks for the stock, and it's currently trading above its short- and long-term moving averages.

7. California Water Service Group (NYSE:CWT): Provides water utility and other related services in California, Washington, New Mexico, and Hawaii. Dividend yield at 3.32%. The EPS estimate for the company's current year increased from 1.06 to 1.09 over the last 30 days, an increase of 2.83%. This increase came during a time when the stock price changed by 2.32% (from $18.13 to $18.55 over the last 30 days).

8. Energen Corp. (NYSE:EGN): Engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids in the continental United States. Dividend yield at 1.12%. The EPS estimate for the company's current year increased from 3.84 to 3.93 over the last 30 days, an increase of 2.34%. This increase came during a time when the stock price changed by -15.53% (from $57.24 to $48.35 over the last 30 days).

9. Gorman-Rupp Co. (NYSEMKT:GRC): Designs, manufactures, and sells pumps and related fluid control products worldwide. Dividend yield at 1.29%. The EPS estimate for the company's current year increased from 1.52 to 1.57 over the last 30 days, an increase of 3.29%. This increase came during a time when the stock price changed by -10.22% (from $31.11 to $27.93 over the last 30 days).

10. Hormel Foods Corp. (NYSE:HRL): Produces and markets various meat and food products in the United States and Internationally. Dividend yield at 1.86%. The EPS estimate for the company's current year increased from 1.71 to 1.73 over the last 30 days, an increase of 1.17%. This increase came during a time when the stock price changed by -3.25% (from $28.29 to $27.37 over the last 30 days).

11. MGE Energy Inc. (NASDAQ:MGEE): Operates as a public utility holding company. Dividend yield at 3.68%. The EPS estimate for the company's current year increased from 2.74 to 2.82 over the last 30 days, an increase of 2.92%. This increase came during a time when the stock price changed by 0.05% (from $41.56 to $41.58 over the last 30 days). The stock is currently in an uptrend, trading above short-term and long-term moving averages.

12. The McGraw-Hill Companies, Inc. (MHP): Provides various information services for financial, educational, and business information markets worldwide. Dividend yield at 2.41%. The EPS estimate for the company's current year increased from 2.88 to 2.9 over the last 30 days, an increase of 0.69%. This increase came during a time when the stock price changed by -6.48% (from $44.43 to $41.55 over the last 30 days).

13. National Fuel Gas Co. (NYSE:NFG): Operates as a diversified energy company primarily in the United States. Dividend yield at 2.29%. The EPS estimate for the company's current year increased from 2.67 to 2.71 over the last 30 days, an increase of 1.5%. This increase came during a time when the stock price changed by -11.69% (from $70.13 to $61.93 over the last 30 days). It's worth pointing out that the stock has a low short float (currently at 1.03%), which may suggest that sophisticated investors, like short-sellers, think the stock's upside potential outweighs the downside.

14. Pentair, Inc. (NYSE:PNR): Operates as a diversified industrial manufacturing company worldwide. Dividend yield at 2.4%. The EPS estimate for the company's current year increased from $2.46 to $2.47 over the last 30 days, an increase of 0.41%. This increase came during a time when the stock price changed by -5.57% (from 35.37 to 33.4 over the last 30 days).

15. PPG Industries Inc. (NYSE:PPG): PPG Industries, Inc. manufactures and supplies protective and decorative coatings. Dividend yield at 3.04%. The EPS estimate for the company's current year increased from 6.84 to 6.86 over the last 30 days, an increase of 0.29%. This increase came during a time when the stock price changed by -8.19% (from 81.72 to 75.03 over the last 30 days).

16. RLI Corp. (NYSE:RLI): RLI Corp., through its subsidiaries, underwrites property and casualty insurance primarily in the United States. Dividend yield at 1.91%. The EPS estimate for the company's current year increased from 4.95 to 5.09 over the last 30 days, an increase of 2.83%. This increase came during a time when the stock price changed by 1.65% (from $61.75 to $62.77 over the last 30 days). The stock is in rally mode, trading above its 20-day, 50-day and 200-day moving averages.

17. Stepan Company (NYSE:SCL): Engages in the production and sale of specialty and intermediate chemicals to manufacturers in various industries worldwide. Dividend yield at 1.41%. The EPS estimate for the company's current year increased from 6.46 to 6.58 over the last 30 days, an increase of 1.86%. This increase came during a time when the stock price changed by -3.53% (from $76.19 to $73.50 over the last 30 days). The stock is in rally mode, trading above its 20-day, 50-day and 200-day moving averages.

18. SJW Corp. (NYSE:SJW): Engages in the production, purchase, storage, purification, distribution, wholesale, and retail sale of water. Dividend yield at 3.05%. The EPS estimate for the company's current year increased from 0.99 to 1.01 over the last 30 days, an increase of 2.02%. This increase came during a time when the stock price changed by -3.49% (from $23.48 to $22.66 over the last 30 days).

19. Questar Corporation (NYSE:STR): Operates as an integrated natural gas holding company. Dividend yield at 3.3%. The EPS estimate for the company's current year increased from 1.1 to 1.12 over the last 30 days, an increase of 1.82%. This increase came during a time when the stock price changed by 0.93% (from $18.32 to $18.49 over the last 30 days).

20. Stanley Black & Decker, Inc. (NYSE:SWK): Provides hand tools, mechanical access solutions, and electronic security solutions. Dividend yield at 2.72%. The EPS estimate for the company's current year increased from 5.28 to 5.29 over the last 30 days, an increase of 0.19%. This increase came during a time when the stock price changed by -4.75% (from $63.37 to $60.36 over the last 30 days).

21. Tompkins Financial Corporation. (NYSEMKT:TMP): Tompkins Financial Corporation, through its banking subsidiaries, Tompkins Trust Company, The Bank of Castile, and The Mahopac National Bank, provides banking and financial services to individuals, corporations, and other business clients in New York. Dividend yield at 3.82%. The EPS estimate for the company's current year increased from 3.23 to 3.3 over the last 30 days, an increase of 2.17%. This increase came during a time when the stock price changed by -5.86% (from $40.07 to $37.72 over the last 30 days). It's been a rough couple of weeks for the stock, and it's currently stuck in a strong downtrend.

22. Tennant Company (NYSE:TNC): Engages in the design, manufacture, and marketing cleaning solutions worldwide. Dividend yield at 1.6%. The EPS estimate for the company's current year increased from 1.81 to 2 over the last 30 days, an increase of 10.5%. This increase came during a time when the stock price changed by 0.88% (from $42.04 to $42.41 over the last 30 days). The stock is in rally mode, trading above its 20-day, 50-day and 200-day moving averages.

23. Universal Corp. (NYSE:UVV): Operates as a leaf tobacco merchant and processor worldwide. Dividend yield at 4.63%. The EPS estimate for the company's current year increased from 3.05 to 4 over the last 30 days, an increase of 31.15%. This increase came during a time when the stock price changed by 16.35% (from $35.65 to $41.48 over the last 30 days). The stock is currently in an uptrend, trading above short-term and long-term moving averages.

EPS and price data sourced from Yahoo Finance; all other data sourced from Finviz.

Source: 23 Dividend Champs That Earnings Show May Be Underpriced