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Looking for stocks trading at attractive prices? Here are some ideas to get you started on your search.

We ran a screen on the S&P 500 for stocks paying dividends above 1% and sustainable payout ratios below 50%. We then screened these stocks for those that appear undervalued relative to the Graham Number.

This number was created by the "godfather of value investing" Benjamin Graham, and calculates a stock's maximum fair value based off of its EPS and book value per share (BVPS). Stocks trading below their Graham Number may be undervalued.

Graham Number = SQRT(22.5 x TTM EPS x MRQ BVPS)

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. Fifth Third Bancorp (NASDAQ:FITB): Operates as a diversified financial services holding company in the United States. Market cap of $12.65B. Dividend yield at 2.33%, payout ratio at 18.13%. TTM Diluted EPS at $1.19, MRQ Book Value Per Share at $13.73, Graham number at $19.17 (vs. current price at $13.72, implies a potential upside of 39.75%). This is a risky stock that is significantly more volatile than the overall market (beta = 2.19). The stock has had a good month, gaining 15.64%.

2. Northrop Grumman Corporation (NYSE:NOC): Provides products, services, and solutions in aerospace, electronics, information systems, shipbuilding, and technical service sectors. Market cap of $15.72B. Dividend yield at 3.32%, payout ratio at 30.93%. TTM Diluted EPS at $6.72, MRQ Book Value Per Share at $45.01, Graham number at $82.50 (vs. current price at $59.98, implies a potential upside of 37.54%). The stock has lost 1.05% over the last year.

3. Huntington Bancshares Incorporated (NASDAQ:HBAN): Operates as the holding company for The Huntington National Bank that provides commercial and consumer banking services. Market cap of $5.21B. Dividend yield at 2.65%, payout ratio at 14.01%. TTM Diluted EPS at $0.51, MRQ Book Value Per Share at $5.83, Graham number at $8.18 (vs. current price at $5.97, implies a potential upside of 37.0%). The stock has had a good month, gaining 18.7%.

4. Carnival Corporation (NYSE:CCL): Operates as a cruise and vacation company. Market cap of $23.72B. Dividend yield at 3.27%, payout ratio at 41.10%. TTM Diluted EPS at $2.42, MRQ Book Value Per Share at $30.67, Graham number at $40.87 (vs. current price at $30.32, implies a potential upside of 34.78%). The stock is currently stuck in a downtrend, trading 7.66% below its SMA20, 7.26% below its SMA50, and 10.76% below its SMA200. It's been a rough couple of days for the stock, losing 8.75% over the last week.

5. Entergy Corporation (NYSE:ETR): Operates as an integrated energy company in the United States. Market cap of $12.55B. Dividend yield at 4.66%, payout ratio at 41.72%. TTM Diluted EPS at $7.92, MRQ Book Value Per Share at $50.92, Graham number at $95.26 (vs. current price at $70.75, implies a potential upside of 34.64%). The stock has gained 3.01% over the last year.

6. State Street Corp. (NYSE:STT): Provides various financial services and products to the institutional investors worldwide. Market cap of $19.65B. Dividend yield at 1.80%, payout ratio at 17.34%. TTM Diluted EPS at $3.19, MRQ Book Value Per Share at $38.84, Graham number at $52.80 (vs. current price at $39.65, implies a potential upside of 33.16%). It's been a rough couple of days for the stock, losing 7.46% over the last week.

7. Murphy Oil Corporation (NYSE:MUR): Engages in the exploration and production of oil and gas properties worldwide. Market cap of $11.76B. Dividend yield at 1.81%, payout ratio at 20.67%. TTM Diluted EPS at $5.97, MRQ Book Value Per Share at $45.93, Graham number at $78.55 (vs. current price at $59.80, implies a potential upside of 31.35%). The stock has had a good month, gaining 18.49%.

8. ConocoPhillips (NYSE:COP): Operates as an integrated energy company worldwide. Market cap of $94.93B. Dividend yield at 3.69%, 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 $71.39, implies a potential upside of 30.64%). The stock has gained 8.91% over the last year.

9. Molson Coors Brewing Company (NYSE:TAP): Distributes beer brands. Market cap of $7.94B. Dividend yield at 2.92%, payout ratio at 31.45%. TTM Diluted EPS at $3.26, MRQ Book Value Per Share at $43.61, Graham number at $56.56 (vs. current price at $43.43, implies a potential upside of 30.23%). The stock has lost 6.87% over the last year.

10. Wells Fargo & Company (NYSE:WFC): Provides retail, commercial, and corporate banking services primarily in the United States. Market cap of $159.47B. Dividend yield at 1.59%, payout ratio at 7.29%. TTM Diluted EPS at $2.70, MRQ Book Value Per Share at $24.14, Graham number at $38.29 (vs. current price at $29.70, implies a potential upside of 28.94%). The stock has had a good month, gaining 18.08%.

11. 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 $13.32B. Dividend yield at 3.46%, 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 $55.44, implies a potential upside of 27.80%). The stock has gained 10.68% over the last year.

12. Ameriprise Financial Inc. (NYSE:AMP): Provides financial planning, products, and services primarily in the United States. Market cap of $11.88B. Dividend yield at 2.13%, payout ratio at 16.89%. TTM Diluted EPS at $4.37, MRQ Book Value Per Share at $45.21, Graham number at $66.67 (vs. current price at $52.33, implies a potential upside of 27.41%). Might be undervalued at current levels, with a PEG ratio at 0.88, and P/FCF ratio at 9.37. The stock has had a good month, gaining 16.23%.

13. The Chubb Corporation (NYSE:CB): Provides property and casualty insurance to businesses and individuals. Market cap of $19.53B. Dividend yield at 2.22%, payout ratio at 24.05%. TTM Diluted EPS at $6.20, MRQ Book Value Per Share at $56.24, Graham number at $88.57 (vs. current price at $69.82, implies a potential upside of 26.86%). The stock has gained 24.45% over the last year.

14. M&T Bank Corporation (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 $10.27B. Dividend yield at 3.43%, payout ratio at 41.09%. TTM Diluted EPS at $6.91, MRQ Book Value Per Share at $67.73, Graham number at $102.62 (vs. current price at $81.32, implies a potential upside of 26.19%). The stock has had a good month, gaining 13.91%.

15. Baker Hughes Incorporated (NYSE:BHI): Supplies wellbore related products, and technology services and systems for drilling, formation evaluation, completion and production, and reservoir technology and consulting to the oil and natural gas industry worldwide. Market cap of $21.19B. Dividend yield at 1.24%, payout ratio at 14.83%. TTM Diluted EPS at $4.03, MRQ Book Value Per Share at $35.62, Graham number at $56.83 (vs. current price at $47.75, implies a potential upside of 19.02%). It's been a rough couple of days for the stock, losing 6.53% over the last week.

16. Edison International (NYSE:EIX): Engages in the supply of electric energy in central, coastal, and southern California. Market cap of $13.18B. Dividend yield at 3.21%, payout ratio at 43.05%. TTM Diluted EPS at $2.95, MRQ Book Value Per Share at $33.81, Graham number at $47.37 (vs. current price at $40.32, implies a potential upside of 17.49%). The stock has gained 9.92% over the last year.

17. Sealed Air Corporation (NYSE:SEE): Manufactures and sells packaging and performance-based materials and equipment systems worldwide. Market cap of $3.67B. Dividend yield at 2.72%, payout ratio at 33.84%. TTM Diluted EPS at $1.40, MRQ Book Value Per Share at $15.83, Graham number at $22.33 (vs. current price at $19.16, implies a potential upside of 16.55%). The stock has had a couple of great days, gaining 9.32% over the last week.

18. Staples, Inc. (NASDAQ:SPLS): Operates as an office products company. Market cap of $10.81B. Dividend yield at 2.59%, payout ratio at 28.03%. TTM Diluted EPS at $1.37, MRQ Book Value Per Share at $10.24, Graham number at $17.77 (vs. current price at $15.33, implies a potential upside of 15.89%). Might be undervalued at current levels, with a PEG ratio at 0.94, and P/FCF ratio at 12.6. The stock has had a good month, gaining 10.99%.

*Author owns shares of EIX and has no plans to change his position in the next 72 hours. BVPS and EPS data sourced from Yahoo! Finance, all other data sourced from Finviz.

Disclosure: I am long EIX.

Source: 18 S&P 500 Dividend Stocks Undervalued By Graham