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For ideas on how to search for income investments, here’s a list you may find interesting.

Benjamin Graham, known as the “godfather of value investing,” created an equation that calculates the fair value of stocks based on two fundamental 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). 

This equation assumes that a stock is overvalued if P/E is over 15 or P/BV is over 1.5.

Stocks trading at a significant discount to their Graham number may be undervalued.

We ran a screen on high dividend yield stocks, paying dividend yields above 3% and sustainable payout ratios below 50%. We screened these stocks for those trading at significant discounts to their Graham number.

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 these stocks should be trading higher? Use this list as a starting-off point for your own analysis.

List sorted by potential upside implied by Graham number.

1. WesBanco Inc. (NASDAQ:WSBC): Operates as a holding company for WesBanco Bank, Inc. Market cap of $550.18M. Dividend yield at 3.10%, payout ratio at 36.72%. TTM Diluted EPS at $1.56, MRQ Book Value Per Share at $23.40, Graham number at $28.66 (vs. current price at $20.66, implies a potential upside of 38.72%). The stock has had a good month, gaining 17.72%.

2. Citizens & Northern Corp. (NASDAQ:CZNC): Operates as the holding for Citizens & Northern Bank, which provides various banking and mortgage products and services to individual and corporate customers in north central Pennsylvania and southern New York. Market cap of $205.33M. Dividend yield at 3.79%, payout ratio at 29.40%. TTM Diluted EPS at $1.82, MRQ Book Value Per Share at $13.27, Graham number at $23.31 (vs. current price at $16.90, implies a potential upside of 37.94%). The stock has had a good month, gaining 13.73%.

3. Olin Corp. (NYSE:OLN): Engages in the manufacture and sale of chlor alkali products in the United States and internationally. Market cap of $1.57B. Dividend yield at 4.08%, payout ratio at 28.41%. TTM Diluted EPS at $2.61, MRQ Book Value Per Share at $12.32, Graham number at $26.90 (vs. current price at $19.60, implies a potential upside of 37.23%). The stock is a short squeeze candidate, with a short float at 5.82% (equivalent to 5.06 days of average volume). The stock has gained 1.98% over the last year.

4. Alliance Financial Corporation (NASDAQ:ALNC): Operates as the bank holding company for Alliance Bank, N. Market cap of $152.33M. Dividend yield at 3.87%, payout ratio at 43.83%. TTM Diluted EPS at $2.79, MRQ Book Value Per Share at $30.15, Graham number at $43.50 (vs. current price at $32.07, implies a potential upside of 35.66%). The stock is a short squeeze candidate, with a short float at 6.25% (equivalent to 20.55 days of average volume). The stock has had a good month, gaining 12.96%.

5. Commercial National Financial Corp. (OTCQX: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 44.82%. 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 31.15% over the last year.

6. Big 5 Sporting Goods Corp. (NASDAQ:BGFV): Operates as a sporting goods retailer in the western United States. Market cap of $182.16M. Dividend yield at 3.62%, payout ratio at 32.93%. TTM Diluted EPS at $0.76, MRQ Book Value Per Share at $7.11, Graham number at $11.03 (vs. current price at $8.28, implies a potential upside of 33.17%). The stock has had a couple of great days, gaining 5.21% over the last week.

7. Portland General Electric Company (NYSE:POR): Operates as an integrated electric utility in Oregon. Market cap of $1.86B. Dividend yield at 4.30%, payout ratio at 47.27%. TTM Diluted EPS at $2.19, MRQ Book Value Per Share at $21.83, Graham number at $32.80 (vs. current price at $24.66, implies a potential upside of 33.0%). The stock has gained 23.3% over the last year.

8. S&T Bancorp Inc. (NASDAQ:STBA): Operates as the holding company for the S&T Bank, which provides community banking services in Pennsylvania. Market cap of $548.99M. Dividend yield at 3.07%, payout ratio at 43.06%. TTM Diluted EPS at $1.39, MRQ Book Value Per Share at $21.48, Graham number at $25.92 (vs. current price at $19.53, implies a potential upside of 32.71%). The stock is a short squeeze candidate, with a short float at 10.58% (equivalent to 17.48 days of average volume). It's been a rough couple of days for the stock, losing 5.33% over the last week. The stock has had a good month, gaining 17.16%.

9. Southside Bancshares Inc. (NASDAQ:SBSI): Operates as the holding company for Southside Bank that provides financial products and services to individuals, businesses, municipal entities, and non-profit organizations. Market cap of $341.34M. Dividend yield at 3.47%, payout ratio at 36.36%. TTM Diluted EPS at $2.25, MRQ Book Value Per Share at $14.74, Graham number at $27.32 (vs. current price at $20.75, implies a potential upside of 31.65%). The stock is a short squeeze candidate, with a short float at 6.11% (equivalent to 15.26 days of average volume). The stock has had a good month, gaining 11.68%.

10. OceanFirst Financial Corp. (NASDAQ:OCFC): Operates as the holding company for OceanFirst Bank that provides community banking services to retail, government, and business customers primarily in Ocean, Monmouth, and Middlesex counties in New Jersey. Market cap of $251.84M. Dividend yield at 3.59%, payout ratio at 42.93%. TTM Diluted EPS at $1.16, MRQ Book Value Per Share at $11.85, Graham number at $17.59 (vs. current price at $13.36, implies a potential upside of 31.64%). The stock has had a couple of great days, gaining 7.74% over the last week.

11. M&T Bank Corp. (NYSE:MTB): Operates as the holding company for M&T Bank and M&T Bank, National Association that provide commercial and retail banking services to individuals, corporations and other businesses, and institutions. Market cap of $9.83B. Dividend yield at 3.58%, payout ratio at 40.85%. TTM Diluted EPS at $6.91, MRQ Book Value Per Share at $67.73, Graham number at $102.62 (vs. current price at $78.30, implies a potential upside of 31.06%). The stock has gained 8.4% over the last year.

12. Raytheon Co. (NYSE:RTN): Provides electronics, mission systems integration, and other capabilities in the areas of sensing, effects, and command, control, communications, and intelligence systems, as well as mission support services in the United States and internationally. Market cap of $15.07B. Dividend yield at 3.95%, payout ratio at 33.30%. TTM Diluted EPS at $4.89, MRQ Book Value Per Share at $28.85, Graham number at $56.34 (vs. current price at $43.54, implies a potential upside of 29.40%). The stock has lost 2.07% over the last year.

13. Community Trust Bancorp Inc. (NASDAQ:CTBI): Operates as the holding company for Community Trust Bank, Inc. Market cap of $434.38M. Dividend yield at 4.40%, payout ratio at 49.37%. TTM Diluted EPS at $2.49, MRQ Book Value Per Share at $23.58, Graham number at $36.35 (vs. current price at $28.17, implies a potential upside of 29.03%). The stock is a short squeeze candidate, with a short float at 5.5% (equivalent to 14.11 days of average volume). The stock has had a couple of great days, gaining 6.38% over the last week.

14. Entergy Corporation (NYSE:ETR): Operates as an integrated energy company in the United States. Market cap of $12.28B. Dividend yield at 4.81%, payout ratio at 46.76%. TTM Diluted EPS at $7.06, MRQ Book Value Per Share at $48.62, Graham number at $87.88 (vs. current price at $69.01, implies a potential upside of 27.35%). The stock has lost 2.8% over the last year.

15. Whirlpool Corp. (NYSE:WHR): Engages in the manufacture and marketing of home appliances worldwide. Market cap of $3.96B. Dividend yield at 3.86%, payout ratio at 39.71%. TTM Diluted EPS at $3.29, MRQ Book Value Per Share at $57.87, Graham number at $65.45 (vs. current price at $51.80, implies a potential upside of 26.35%). The stock is currently stuck in a downtrend, trading 8.07% below its SMA20, 7.29% below its SMA50, and 29.93% below its SMA200. It's been a rough couple of days for the stock, losing 9.76% over the last week.

16. NL Industries Inc. (NYSE:NL): Operates in the component products industry in the United States, Canada, and Taiwan. Market cap of $731.85M. Dividend yield at 3.32%, payout ratio at 23.34%. TTM Diluted EPS at $2.11, MRQ Book Value Per Share at $7.56, Graham number at $18.94 (vs. current price at $15.04, implies a potential upside of 25.96%). The stock is a short squeeze candidate, with a short float at 5.63% (equivalent to 8.3 days of average volume). The stock has had a couple of great days, gaining 13.25% over the last week.

17. Great Southern Bancorp Inc. (NASDAQ:GSBC): Operates as the bank holding company for Great Southern Bank that offers various banking products and services in Missouri, Iowa, Kansas, Nebraska, and Arkansas. Market cap of $274.99M. Dividend yield at 3.52%, payout ratio at 48.27%. TTM Diluted EPS at $1.50, MRQ Book Value Per Share at $19.14, Graham number at $25.42 (vs. current price at $20.43, implies a potential upside of 24.41%). The stock is a short squeeze candidate, with a short float at 8.81% (equivalent to 27.1 days of average volume). The stock has had a good month, gaining 20.11%.

18. 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 $12.59B. Dividend yield at 3.64%, payout ratio at 27.10%. TTM Diluted EPS at $3.20, MRQ Book Value Per Share at $17.63, Graham number at $35.63 (vs. current price at $28.81, implies a potential upside of 23.67%). This is a risky stock that is significantly more volatile than the overall market (beta = 2.17). The stock has had a couple of great days, gaining 11.11% over the last week.

19. Sempra Energy (NYSE:SRE): Engages in the development of energy infrastructure, operation of utilities, and provision of energy-related products and services worldwide. Market cap of $12.97B. Dividend yield at 3.55%, payout ratio at 35.42%. TTM Diluted EPS at $4.85, MRQ Book Value Per Share at $40.01, Graham number at $66.08 (vs. current price at $54.15, implies a potential upside of 22.02%). The stock has gained 4.9% over the last year.

20. Greif, Inc. (NYSE:GEF): Engages in the manufacture and sale of industrial packaging products, and containerboard and corrugated products worldwide. Market cap of $2.21B. Dividend yield at 3.59%, payout ratio at 42.24%. TTM Diluted EPS at $4.89, MRQ Book Value Per Share at $28.82, Graham number at $56.31 (vs. current price at $46.74, implies a potential upside of 20.48%). The stock has lost 18.1% over the last year.

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

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