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Value investors search for stocks that appear underpriced relative to their intrinsic value, which is based off of company metrics such as earnings or book value. One helpful way to find undervalued opportunities is from the “godfather of value investing” himself, Benjamin Graham.

Graham created an equation to calculate the maximum fair value for a stock, referred to as the Graham Number. Any stock trading at a significant discount to this number would appear undervalued.

The Graham Number 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).

We used the Graham Number to screen for potentially undervalued stocks among the universe of stocks paying dividend yields above 4%.

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 names? Use this list as a starting-off point for your own analysis.

List sorted by potential upside implied by Graham number.

1. Meredith Corp. (NYSE:MDP): Engages in magazine publishing and related brand licensing, television broadcasting, integrated marketing, interactive media, and video production businesses in the United States. Market cap of $1.07B. Dividend yield at 4.32%, payout ratio at 33.61%. TTM Diluted EPS at $2.78, MRQ Book Value Per Share at $17.20, Graham number at $32.80 (vs. current price at $23.59, implies a potential upside of 39.04%). The stock is a short squeeze candidate, with a short float at 23.83% (equivalent to 12.15 days of average volume). The stock has lost 23.31% over the last year.

2. National Bankshares Inc. (NASDAQ:NKSH): Provides a range of retail and commercial banking services to individuals, businesses, non-profits, and local governments in Virginia. Market cap of $160.04M. Dividend yield at 4.16%, payout ratio at 41.06%. TTM Diluted EPS at $2.31, MRQ Book Value Per Share at $19.65, Graham number at $31.96 (vs. current price at $23.06, implies a potential upside of 38.59%). The stock is a short squeeze candidate, with a short float at 5.58% (equivalent to 25.52 days of average volume). It's been a rough couple of days for the stock, losing 8.64% over the last week.

3. NBT Bancorp, Inc. (NASDAQ:NBTB): Provides commercial banking and financial services to individuals, corporations, and municipalities in central and upstate New York, northeastern Pennsylvania, and the greater Burlington, Vermont area. Market cap of $595.89M. Dividend yield at 4.51%, payout ratio at 47.52%. TTM Diluted EPS at $1.68, MRQ Book Value Per Share at $15.94, Graham number at $24.55 (vs. current price at $17.74, implies a potential upside of 38.37%). It's been a rough couple of days for the stock, losing 8.93% over the last week.

4. Commercial National Financial Corp. (OTCQB:CNAF): Operates as a holding company for the Commercial Bank & Trust of PA that provides various commercial banking and trust services primarily in Pennsylvania. Market cap of $57.92M. Dividend yield at 5.14%, payout ratio at 45.68%. TTM Diluted EPS at $1.96, MRQ Book Value Per Share at $16.78, Graham number at $27.20 (vs. current price at $20.25, implies a potential upside of 34.34%). The stock has gained 27.04% over the last year.

5. International Paper Co. (NYSE:IP): Operates as a paper and packaging company with operations in North America, Europe, Latin America, Russia, Asia, and north Africa. Market cap of $11.44B. Dividend yield at 4.01%, payout ratio at 24.88%. TTM Diluted EPS at $2.93, MRQ Book Value Per Share at $17.63, Graham number at $34.09 (vs. current price at $26.17, implies a potential upside of 30.27%). This is a risky stock that is significantly more volatile than the overall market (beta = 2.18). The stock has gained 20.49% over the last year.

6. Community Bank System Inc. (NYSE:CBU): Operates as the holding company for Community Bank, N. Market cap of $835.22M. Dividend yield at 4.58%, payout ratio at 49.12%. TTM Diluted EPS at $1.95, MRQ Book Value Per Share at $19.83, Graham number at $29.50 (vs. current price at $22.69, implies a potential upside of 30.0%). The stock is a short squeeze candidate, with a short float at 12.06% (equivalent to 17.25 days of average volume). It's been a rough couple of days for the stock, losing 6.2% over the last week.

7. Destination Maternity Corporation (NASDAQ:DEST): Engages in the design and retail of maternity apparel. Market cap of $175.96M. Dividend yield at 5.26%, payout ratio at 28.01%. TTM Diluted EPS at $1.89, MRQ Book Value Per Share at $6.95, Graham number at $17.19 (vs. current price at $13.30, implies a potential upside of 29.26%). It's been a rough couple of days for the stock, losing 5.07% over the last week.

8. Hudson Valley Holding Corp. Com (NYSE:HVB): Operates as the holding company for Hudson Valley Bank, which provides banking and related services to businesses, professionals, municipalities, not-for-profit organizations, and individuals in New York. Market cap of $317.54M. Dividend yield at 4.46%, payout ratio at 39.75%. TTM Diluted EPS at $1.33, MRQ Book Value Per Share at $16.72, Graham number at $22.37 (vs. current price at $17.94, implies a potential upside of 24.68%). The stock has gained 7.88% over the last year.

9. Tompkins Financial Corporation. (NYSEMKT:TMP): Provides banking and financial services to individuals, corporations, and other business clients in New York. Market cap of $388.91M. Dividend yield at 4.01%, payout ratio at 42.90%. TTM Diluted EPS at $3.15, MRQ Book Value Per Share at $27.15, Graham number at $43.87 (vs. current price at $35.91, implies a potential upside of 22.16%). The stock is a short squeeze candidate, with a short float at 6.5% (equivalent to 27.71 days of average volume). The stock has lost 5.35% over the last year.

10. Public Service Enterprise Group Inc. (NYSE:PEG): Operates in the energy industry primarily in the northeastern and mid Atlantic United States. Market cap of $16.33B. Dividend yield at 4.24%, payout ratio at 42.80%. TTM Diluted EPS at $3.35, MRQ Book Value Per Share at $19.98, Graham number at $38.81 (vs. current price at $32.28, implies a potential upside of 20.22%). The stock has had a good month, gaining 12.59%.

*EPS and BVPS data sourced from Yahoo! Finance, all other data sourced from Finviz.

Source: 10 High Dividend Yield Stocks Undervalued By Graham