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.
