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Greece remains a negative X-factor in the markets and the heads of state of Europe remain deadlocked on the situation, but that’s nothing new. In our view, investors should be using this point in time to evaluate stocks that are now trading atcheaper valuations or reviewing names that are still trading at a high premium. Why now? Simply put, one way or another some investors are going to make money off the situation at hand.

The forward P/E is a price multiple valuation that uses forecasted earnings. While this valuation metric may be based off estimates, it doesn’t change the fact that it illustrates the investment community's future expectations of a firm. If the investment community believes future earnings will grow then the forward P/E will be less than the current P/E.

Financial leverage is a risk and the financial health ratio metric that provides investors with insight on how the firm is financing its assets. The higher the number, the more a firm is depending on debt financing for its assets. A lower number on the other hand generally indicates more internal financing through shareholder equity. While there is nothing wrong with using debt to finance assets, too much of anything like debt is the equivalent of asking for future headaches if anything doesn't go exactly according to plan.

We ran a screen for dividend stocks trading at a premium (forward P/E>20). From this narrowed list of candidates, we then looked for firms that also operate with a high degree of financial leverage. We did not screen out any sectors or market caps.

The list is ranked from highest to lowest by the Forward P/E ratio:

1. Taubman Centers, Inc. (NYSE:TCO)

Sector

Real Estate

Industry

REIT - Retail

Market Cap

$3,250M

Beta

1.86

The firm develops, owns, and operates regional shopping centers.The company has a forward P/E ratio of 49.02. TCO’s financial leverage this quarter is 63.70. The firm’s dividend yield is 3.12%. The short interest was 10.30% as of 09/30/2011.

2. Simon Property Group Inc. (NYSE:SPG)

Sector

Real Estate

Industry

REIT - Retail

Market Cap

$35,437M

Beta

1.64

The firm develops and operates retail real estate primarily in regional malls and centers.The company has a forward P/E ratio of 38.91. SPG’s financial leverage this quarter is 5.17. The firm’s dividend yield is 2.65%. The short interest was 4.10% as of 09/30/2011.

3. CBL & Associates Properties, I. (NYSE:CBL)

Sector

Real Estate

Industry

REIT - Retail

Market Cap

$2,153M

Beta

3.89

The firm develops, owns, and operates regional shopping malls and community centers. The company has a forward P/E ratio of 24.57. CBL’s financial leverage this quarter is 5.79. The firm’s dividend yield is 5.72%. The short interest was 13.70% as of 09/30/2011.

4. ONEOK, Inc. (NYSE:OKE)

Sector

Energy

Industry

Oil & Gas Midstream

Market Cap

$7,626M

Beta

1.04

The firm transports, stores, and sells natural gas. The company has a forward P/E ratio of 20.41. OKE’s financial leverage this quarter is 5.88. The firm’s dividend yield is 2.82%. The short interest was 3.70% as of 09/30/2011.

5. Regal Entertainment Group. (NYSE:RGC)

Sector

Consumer Cyclical

Industry

Leisure

Market Cap

$2,016M

Beta

0.93

The firm operates a theatre circuit in the US. The company has a forward P/E ratio of 19.01. RGC’s financial leverage this quarter is 310.77. The firm’s dividend yield is 6.21%. The short interest was N/A as of 09/30/2011.

6. Marriott International, Inc. (NASDAQ:MAR)

Sector

Consumer Cyclical

Industry

Lodging

Market Cap

$10,376M

Beta

1.60

The firm operates and franchises a variety of hotel and resort chains. The company has a forward P/E ratio of 18.90. MAR’s financial leverage this quarter is 19.69. The firm’s dividend yield is 1.21%. The short interest was 6.50% as of 09/30/2011.

7. Teekay Offshore Partners L.P. (NYSE:TOO)

Sector

Industrials

Industry

Shipping & Ports

Market Cap

$1,667M

Beta

0.60

The firm offers marine transport and storage services. The company has a forward P/E ratio of 17.67. TOO’s financial leverage this quarter is 6.05. The firm’s dividend yield is 7.34%. The short interest was 2.30% as of 09/30/2011.

8. Corporate Executive Board Comp. (EXBD)

Sector

Industrials

Industry

Business Services

Market Cap

$1,130M

Beta

0.90

The firm offers a variety of business consulting services. The company has a forward P/E ratio of 17.36. EXBD’s financial leverage this quarter is 5.19. The firm’s dividend yield is 1.71%. The short interest was 5.80% as of 09/30/2011.

10. Automatic Data Processing, Inc. (NASDAQ:ADP)

Sector

Industrials

Industry

Business Services

Market Cap

$25,586M

Beta

0.66

The firm offers a variety of payroll HR, and other outsourcing business services. The company has a forward P/E ratio of 17.21 .ADP’s financial leverage this quarter is 5.70. The firm’s dividend yield is 2.76%. The short interest was 1.40% as of 09/30/2011.

We hope this list helps as investors do their own due diligence on dividend stocks that hold high valuations and financial leverage.

Source: 9 Potentially Overvalued Dividend Stocks That May Fall Because Of Market Chaos