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Sometimes a dividend stock just can’t catch a break. Investors dislike the sector, industry, and or it's just not worth the risk anymore. In our view that isn’t always a bad thing though because for the opportunistic investor one man’s trash could easily be his treasure.

The Price/Book Value Ratio is a price-multiple valuation that helps investors get a better idea of whether a company is undervalued, fairly valued, or overvalued based off its assets and liabilities. Generally, if a stock is trading below 1 it has entered into a technical area where it is now valued by less than its intrinsic “break up” value. In situations like this there could be some something flawed with the company but given recent market volatility this could also be a case of mispricing, which could mean there is a great potential opportunity.

Return on Assets (TTM) is a twelve-month trailing profitability ratio that related to a firms asset base. This metric looks to see how well a firm’s assets alone are being used to generate a profit and what that the rate of return actually is. Often institutional investors will use this metric in an attempt to quantify a firm’s management team capabilities.

We first looked for dividend stocks that are trading close to their P/BV (X<3). From this narrowed list we then focused on firms that illustrated clear and continued profitability with their assets (ROA (TTM)>10).

The list is ranked from highest to lowest by the dividend yield:

1. AstraZeneca PLC. (AZN)

Sector

Healthcare

Industry

Drug Manufacturers - Major

Market Cap

$66,404M

Beta

0.58

The company develops and sells prescription pharmaceuticals in a variety of healthcare spaces. The company has a dividend yield of 5.56%. AZN has an P/BV ratio of 2.81. The firm’s ROA (TTM) is 14.35%. The short interest was N/A as of 09/30/2011.

2. Turkcell Iletisim Hizmetleri A. (TKC)

Sector

Communication Seer

Industry

Telecom Services

Market Cap

$10,692M

Beta

0.65

The company provides mobile services in Turkey. The company has a dividend yield of 4.86%. TKC has an P/BV ratio of 1.73. The firm’s ROA (TTM) is 11.95%. The short interest was N/A as of 09/30/2011.

3. Sasol, Ltd. (SSL)

Sector

Energy

Industry

Oil & Gas Integrated

Market Cap

$27,911M

Beta

1.43

The company is an integrated oil and gas company. The company has a dividend yield of 3.90%. SSL has an P/BV ratio of 2.06. The firm’s ROA (TTM) is 10.69%. The short interest was N/A as of 09/30/2011.

4. China Mobile Ltd. (CHL)

Sector

Communication Services

Industry

Telecom Services

Market Cap

$199,873M

Beta

0.32

The company provides a full range of mobile telecom services within Mainland China. The company has a dividend yield of 3.69%. CHL has an P/BV ratio of 2.09. The firm’s ROA (TTM) is 13.51%. The short interest was N/A as of 09/30/2011.

5. Johnson & Johnson. (JNJ)

Sector

Healthcare

Industry

Drug Manufacturers - Major

Market Cap

$177,383M

Beta

0.62

The company offers a variety of pharmaceuticals, consumer products, and medical devices. The company has a dividend yield of 3.43%. JNJ has an P/BV ratio of 2.85. The firm’s ROA (TTM) is 12.96%. The short interest was 1.80% as of 09/30/2011.

6. Pearson PLC. (PSO)

Sector

Consumer Cyclical

Industry

Publishing

Market Cap

$15,408M

Beta

0.75

The Company is a global publishing company with its principal operations in the education, business information and consumer publishing markets. The company has a dividend yield of 3.38%. PSO has an P/BV ratio of 1.86. The firm’s ROA (TTM) is 12.07%. The short interest was N/A as of 09/30/2011.

7. Yanzhou Coal Mining Company Li. (YZC)

Sector

Basic Matls

Industry

Coal

Market Cap

$12,104M

Beta

2.41

TThe company mines, prepares, and sells coal. The company has a dividend yield of 3.29%. YZC has an P/BV ratio of 1.96. The firm’s ROA (TTM) is 12.42%. The short interest was N/A as of 09/30/2011.

8. CNOOC, Ltd. (CEO)

Sector

Energy

Industry

Oil & Gas E&P

Market Cap

$81,575M

Beta

1.19

An oil and gas company engaged in the exploration, development and production of crude oil and natural gas primarily offshore China. The company has a dividend yield of 3.16%. CEO has an P/BV ratio of 2.12. The firm’s ROA (TTM) is 16.15 %. The short interest was N/A as of 09/30/2011.

9. Intel Corp. (INTC)

Sector

Technology

Industry

Semiconductors

Market Cap

$129,122M

Beta

0.97

The company develops advanced integrated digital technology platforms and components. The company has a dividend yield of 2.97%. INTC has an P/BV ratio of 2.65. The firm’s ROA (TTM) is 18.14%. The short interest was 2.80% as of 09/30/2011.

10. Chevron Corp. (CVX)

Sector

Energy

Industry

Oil & Gas Integrated

Market Cap

$212,857M

Beta

0.76

The company is in the energy sector has chemical, mining, power, and energy service operations. The company has a dividend yield of 2.82%. CVX has an P/BV ratio of 1.84. The firm’s ROA (TTM) is 10.30%. The short interest was 1.40% as of 09/30/2011.

We hope this list helps as investors do their own due diligence and research on large cap stocks that are undervalued and illustrate clear asset profitability.

Source: 10 Cheap Large Cap Stocks That Could Climb Higher