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The Price/Book ratio is a price-valuation metric that helps investors understand whether a company is potentially undervalued. The concept is that the lower the P/BV ratio the more “value” a company may be offering to the opportunistic investor. At the same time something could go fundamentally wrong with the company, which might explain why this ratio is lower than one might expect. If the P/BV metric is below 1 then the company is trading below its break value.

We ran a screen for dividend paying stocks that had a moderate-to-high P/BV ratio (X>8). From this narrowed pool we then screened for stocks that have substantially retraced from their 52-Week highs. We did not screen any companies out by market cap or sector.

1. The Western Union Company (WU)

Sector

Financial Services

Industry

Specialty Finance

Market Cap

$9,579M

Beta

1.60

The company offers money transfer services around the world. The company’s P/BV value is 25.25. WU is 30.73% below the 52-Week High. The company’s dividend yield is 1.97%. The short interest was 2.30% as of 08/31/2011.

2. Cellcom Israel, Ltd. (CEL)

Sector

Communication Services

Industry

Telecom Services

Market Cap

$1,999M

Beta

0.78

The company provides cellular communications services within Israel. The P/BV value is 24.94. CEL is 43.17 % above the 52-Week Low. The dividend yield is 14.49 %. The short interest was 0.80% as of 08/31/2011.

3. Strayer Education, Inc. (STRA)

Sector

Consumer Defensive

Industry

Education & Training Services

Market Cap

$915M

Beta

0.62

The company is a for-profit that offers post-secondary education services. The P/BV value is 23.87. STRA is 58.14 % above the 52-Week Low. The dividend yield is 5.25 %. The short interest was 23.20% as of 08/31/2011.

4. Mercadolibre, Inc. (MELI)

Sector

Industrials

Industry

Business Services

Market Cap

$2,679M

Beta

1.61

The company focuses on enabling e-commerce through its services. The P/BV value is 13.55. MELI is 34.56 % above the 52-Week Low. The dividend yield is 0.26 %. The short interest was 13.10% as of 08/31/2011.

5. Intercontinental Hotels Group. (IHG)

Sector

Consumer Cyclical

Industry

Lodging

Market Cap

$4,536M

Beta

1.55

The company owns and operates hotels worldwide. The P/BV value is 12.92. IHG is 33.26% above the 52-Week Low. The dividend yield is 3.14%. The short interest was N/A as of 08/31/2011.

6. Linear Technology. (LLTC)

Sector

Technology

Industry

Semiconductors

Market Cap

$6,395M

Beta

0.98

The company designs and sells linear integrated circuits. The P/BV value is 12.64. LLTC is 22.36 % above the 52-Week Low. The dividend yield is 3.39 %. The short interest was N/A as of 08/31/2011.

7. Corporate Executive Board Comp. (EXBD)

Sector

Industrials

Industry

Business Services

Market Cap

$1,003M

Beta

0.92

The company offers research, decision support tools and executive education focusing on corporate strategy. The P/BV value is 10.47. EXBD is 36.65% above the 52-Week Low. The dividend yield is 1.93%. The short interest was 4.90% as of 08/31/2011.

8. Sterlite Industries (SLT)

Sector

Basic Materials

Industry

Industrial Metals & Minerals

Market Cap

$8,252M

Beta

2.35

The company mines for non-ferrous metals. The P/BV value is 9.87. SLT is 43.53 % above the 52-Week Low. The dividend yield is 0.81 %. The short interest was N/A as of 08/31/2011.

9. Coach, Inc. (COH)

Sector

Consumer Cyclical

Industry

Luxury Goods

Market Cap

$15,755M

Beta

1.58

The company sells fine accessories and gifts for men and women. The P/BV value is 9.77. COH is 21.23 % above the 52-Week Low. The dividend yield is 1.38 %. The short interest was 1.90% as of 08/31/2011.

10. Accenture PLC. (ACN)

Sector

Industrials

Industry

Business Services

Market Cap

$35,046M

Beta

0.82

The company offers management consulting, technology services and outsourcing services. The P/BV value is 9.43. ACN is 20.89% above the 52-Week Low. The dividend yield is 1.79%. The short interest was 2.30% as of 08/31/2011.

We hope this list helps as investors do their own due diligence on dividend stocks.

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