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If you’re interested in stocks that could offer both income and the potential for growth, here are some ideas to get you started on your search.

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

The Graham Number is a measure of a stock’s maximum fair value, and it only requires two 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.

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 point for your own analysis.

List sorted by potential upside implied by Graham number.

1. SeaCube Container Leasing Ltd. (NYSE:BOX-OLD): Operates as a container leasing company worldwide. Market cap of $309.66M. Dividend yield at 6.25%, payout ratio at 47.60%. TTM Diluted EPS at $1.88, MRQ Book Value Per Share at $10.29, Graham number at $20.86 (vs. current price at $14.93, implies a potential upside of 39.74%). The stock has had a couple of great days, gaining 6.96% over the last week.

2. NYSE Euronext, Inc. (NYSE:NYX): Operates securities exchanges. Market cap of $7.25B. Dividend yield at 4.34%, payout ratio at 48.77%. TTM Diluted EPS at $2.44, MRQ Book Value Per Share at $26.43, Graham number at $38.09 (vs. current price at $27.30, implies a potential upside of 39.53%). The stock has had a couple of great days, gaining 7.38% over the last week.

3. 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 $351.47M. Dividend yield at 3.37%, payout ratio at 36.67%. TTM Diluted EPS at $2.28, MRQ Book Value Per Share at $15.68, Graham number at $28.36 (vs. current price at $20.37, implies a potential upside of 39.23%). The stock is a short squeeze candidate, with a short float at 6.47% (equivalent to 16.92 days of average volume). The stock has had a couple of great days, gaining 6.43% over the last week.

4. 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 $12.69B. Dividend yield at 3.63%, payout ratio at 32.71%. TTM Diluted EPS at $5.55, MRQ Book Value Per Share at $40.20, Graham number at $70.85 (vs. current price at $51.66, implies a potential upside of 37.15%). The stock has gained 7.52% over the last year.

5. ConocoPhillips (NYSE:COP): Operates as an integrated energy company worldwide. Market cap of $96.33B. Dividend yield at 3.64%, payout ratio at 32.21%. TTM Diluted EPS at $7.80, MRQ Book Value Per Share at $49.56, Graham number at $93.26 (vs. current price at $68.14, implies a potential upside of 36.87%). The stock has had a couple of great days, gaining 9.69% over the last week.

6. The Travelers Companies, Inc. (NYSE:TRV): Provides various commercial and personal property and casualty insurance products and services to businesses, government units, associations, and individuals primarily in the United States. Market cap of $22.39B. Dividend yield at 3.02%, payout ratio at 39.36%. TTM Diluted EPS at $3.91, MRQ Book Value Per Share at $60.98, Graham number at $73.24 (vs. current price at $54.07, implies a potential upside of 35.46%). The stock has gained 1.67% over the last year.

7. Sims Metal Management Limited (SMS): Operates in the metal recycling industry. Market cap of $2.79B. Dividend yield at 3.61%, payout ratio at 37.43%. TTM Diluted EPS at $0.91, MRQ Book Value Per Share at $13.81, Graham number at $16.82 (vs. current price at $12.43, implies a potential upside of 35.28%). The stock has had a couple of great days, gaining 16.52% over the last week.

8. Community Trust Bancorp Inc. (NASDAQ:CTBI): Operates as the holding company for Community Trust Bank, Inc. Market cap of $436.05M. Dividend yield at 4.39%, 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 $26.97, implies a potential upside of 34.77%). The stock has had a couple of great days, gaining 6.04% over the last week.

9. Commercial National Financial Corp. (OTCQB: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 $61.78M. Dividend yield at 4.81%, payout ratio at 44.82%. TTM Diluted EPS at $2.13, MRQ Book Value Per Share at $17.98, Graham number at $29.35 (vs. current price at $22.16, implies a potential upside of 32.47%). The stock has gained 22.8% over the last year.

10. Bryn Mawr Bank Corp. (NASDAQ:BMTC): Operates as the holding company for The Bryn Mawr Trust Company, which provides various commercial and retail banking services. Market cap of $246.09M. Dividend yield at 3.19%, payout ratio at 36.91%. TTM Diluted EPS at $1.60, MRQ Book Value Per Share at $14.30, Graham number at $22.69 (vs. current price at $17.14, implies a potential upside of 32.38%). The stock has had a couple of great days, gaining 12.91% over the last week.

11. RadioShack Corp. (NYSE:RSH): Engages in the retail sale of consumer electronic goods and services through its RadioShack store chain and kiosk operations. Market cap of $1.16B. Dividend yield at 4.32%, payout ratio at 24.47%. TTM Diluted EPS at $1.11, MRQ Book Value Per Share at $8.01, Graham number at $14.14 (vs. current price at $10.79, implies a potential upside of 31.08%). The stock has had a couple of great days, gaining 8.63% over the last week.

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 $15.70B. Dividend yield at 3.79%, payout ratio at 33.30%. TTM Diluted EPS at $4.89, MRQ Book Value Per Share at $29.65, Graham number at $57.12 (vs. current price at $43.69, implies a potential upside of 30.73%). The stock has had a couple of great days, gaining 5.17% over the last week.

13. Hudson Valley Holding Corp. (NYSE:HVB): Operates as the holding company for Hudson Valley Bank, which provides banking and related services to businesses, professionals, municipalities, not-for-profit organizations, and individuals in New York. Market cap of $391.74M. Dividend yield at 3.61%, payout ratio at 40.33%. TTM Diluted EPS at $1.43, MRQ Book Value Per Share at $15.59, Graham number at $22.40 (vs. current price at $17.17, implies a potential upside of 30.44%). The stock has had a couple of great days, gaining 18.01% over the last week.

14. National Bankshares Inc. (NASDAQ:NKSH): Operates as the holding company for the National Bank of Blacksburg (NYSE:NBB), a chartered national bank that provides a range of retail and commercial banking services to individuals, businesses, non-profits, and local governments in Virginia. Market cap of $186.55M. Dividend yield at 3.87%, payout ratio at 39.79%. TTM Diluted EPS at $2.38, MRQ Book Value Per Share at $20.44, Graham number at $33.08 (vs. current price at $25.71, implies a potential upside of 28.68%). The stock is a short squeeze candidate, with a short float at 5.69% (equivalent to 28.18 days of average volume). The stock has had a couple of great days, gaining 8.96% over the last week.

15. Ames National Corporation (NASDAQ:ATLO): Provides commercial banking services primarily within the central Iowa counties of Boone, Marshall, Polk, and Story. Market cap of $156.89M. Dividend yield at 3.10%, payout ratio at 35.31%. TTM Diluted EPS at $1.41, MRQ Book Value Per Share at $14.25, Graham number at $21.26 (vs. current price at $16.61, implies a potential upside of 28.01%). The stock has had a couple of great days, gaining 8.19% over the last week.

16. 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 $286.05M. Dividend yield at 3.39%, payout ratio at 48.27%. TTM Diluted EPS at $1.47, MRQ Book Value Per Share at $19.03, Graham number at $25.09 (vs. current price at $19.68, implies a potential upside of 27.48%). The stock is a short squeeze candidate, with a short float at 8.14% (equivalent to 25.7 days of average volume). The stock has had a couple of great days, gaining 10.12% over the last week.

17. NBT Bancorp, Inc. (NASDAQ:NBTB): Provides commercial banking and financial services to individuals, corporations, and municipalities in central and upstate New York, northeastern Pennsylvania, and the greater Burlington, Vermont area. Market cap of $705.57M. Dividend yield at 3.75%, payout ratio at 47.37%. TTM Diluted EPS at $1.70, MRQ Book Value Per Share at $16.28, Graham number at $24.95 (vs. current price at $19.60, implies a potential upside of 27.32%). The stock has had a couple of great days, gaining 11.75% over the last week.

18. Big 5 Sporting Goods Corp. (NASDAQ:BGFV): Operates as a sporting goods retailer in the western United States. Market cap of $203.28M. Dividend yield at 3.25%, payout ratio at 38.63%. TTM Diluted EPS at $0.71, MRQ Book Value Per Share at $7.32, Graham number at $10.81 (vs. current price at $8.65, implies a potential upside of 25.01%). The stock has had a couple of great days, gaining 20.16% over the last week.

19. General Electric Company (NYSE:GE): Operates as a technology, service, and finance company worldwide. Market cap of $169.87B. Dividend yield at 3.73%, payout ratio at 47.38%. TTM Diluted EPS at $1.31, MRQ Book Value Per Share at $11.79, Graham number at $18.64 (vs. current price at $14.92, implies a potential upside of 24.94%). The stock has had a couple of great days, gaining 9.46% over the last week.

20. Harte-Hanks Inc. (NYSE:HHS): Operates as a direct and targeted marketing company that provides direct marketing services and shopper advertising opportunities to local, regional, national, and international customer and business-to-business marketers. Market cap of $579.83M. Dividend yield at 3.47%, payout ratio at 44.59%. TTM Diluted EPS at $0.71, MRQ Book Value Per Share at $7.14, Graham number at $10.68 (vs. current price at $8.55, implies a potential upside of 24.91%). The stock has had a couple of great days, gaining 13.25% over the last week.

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

Source: 20 High-Yield Stocks Undervalued By Their Graham Numbers