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Interested in stocks paying dividend income? Here are some ideas to get you started on your search.

We ran a screen on stocks rallying above their 20-day, 50-day, and 200-day moving averages for those paying dividend yields above 1% and sustainable payout ratios below 50%. We then screened to find those that may be undervalued by finding those trading at the most significant discounts to their 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. SeaCube Container Leasing Ltd. (BOX-OLD): Operates as a container leasing company worldwide. Market cap of $304.62M. Dividend yield at 6.35%, payout ratio at 47.74%. The stock is currently trading at 1.63% above its 20-Day SMA, 1.81% above its 50-Day SMA, and 6.15% above its 200-Day SMA. TTM Diluted EPS at $1.88, MRQ Book Value Per Share at $10.29, Graham number at $20.86 (vs. current price at $14.96, implies a potential upside of 39.46%). The stock has gained 19.07% over the last year.

2. Kelly Services, Inc. (KELYA): Provides workforce solutions to various industries worldwide. Market cap of $622.26M. Dividend yield at 1.18%, payout ratio at 3.39%. The stock is currently trading at 5.77% above its 20-Day SMA, 14.46% above its 50-Day SMA, and 8.27% above its 200-Day SMA. TTM Diluted EPS at $1.44, MRQ Book Value Per Share at $17.84, Graham number at $24.04 (vs. current price at $17.46, implies a potential upside of 37.70%). The stock is a short squeeze candidate, with a short float at 5.17% (equivalent to 7.05 days of average volume). The stock has had a good month, gaining 23%.

3. ProAssurance Corporation (PRA): Provides professional liability insurance products primarily to physicians, dentists, other healthcare providers, and healthcare facilities in the United States. Market cap of $2.47B. Dividend yield at 1.24%, payout ratio at 3.07%. The stock is currently trading at 0.48% above its 20-Day SMA, 2.46% above its 50-Day SMA, and 11.35% above its 200-Day SMA. TTM Diluted EPS at $8.03, MRQ Book Value Per Share at $66.23, Graham number at $109.39 (vs. current price at $80.94, implies a potential upside of 35.15%). The stock has gained 34.98% over the last year.

4. Provident Financial Services, Inc. (PFS): Operates as the holding company for The Provident Bank that provides banking services to individuals, families, and businesses in New Jersey. Market cap of $842.44M. Dividend yield at 3.44%, payout ratio at 48.01%. The stock is currently trading at 2.29% above its 20-Day SMA, 8.15% above its 50-Day SMA, and 10.37% above its 200-Day SMA. TTM Diluted EPS at $0.97, MRQ Book Value Per Share at $16.68, Graham number at $19.08 (vs. current price at $14.26, implies a potential upside of 33.80%). The stock has lost 0.99% over the last year.

5. Washington Federal Inc. (WFSL): Operates as the holding company for Washington Federal, which provides various financial services in the United States. Market cap of $1.67B. Dividend yield at 2.06%, payout ratio at 23.73%. The stock is currently trading at 5.31% above its 20-Day SMA, 13.72% above its 50-Day SMA, and 7.51% above its 200-Day SMA. TTM Diluted EPS at $1.09, MRQ Book Value Per Share at $17.78, Graham number at $20.88 (vs. current price at $15.69, implies a potential upside of 33.09%). The stock has had a good month, gaining 11.9%.

6. Wells Fargo & Company (WFC): Provides retail, commercial, and corporate banking services primarily in the United States. Market cap of $153.20B. Dividend yield at 1.65%, payout ratio at 16.86%. The stock is currently trading at 0.32% above its 20-Day SMA, 8.45% above its 50-Day SMA, and 10.72% above its 200-Day SMA. TTM Diluted EPS at $2.82, MRQ Book Value Per Share at $24.65, Graham number at $39.55 (vs. current price at $30.22, implies a potential upside of 30.87%). The stock has lost 9.13% over the last year.

7. Murphy Oil Corporation (MUR): Engages in the exploration and production of oil and gas properties worldwide. Market cap of $11.98B. Dividend yield at 1.78%, payout ratio at 20.67%. The stock is currently trading at 5.35% above its 20-Day SMA, 11.03% above its 50-Day SMA, and 5.68% above its 200-Day SMA. TTM Diluted EPS at $5.97, MRQ Book Value Per Share at $45.93, Graham number at $78.55 (vs. current price at $60.18, implies a potential upside of 30.52%). The stock has lost 13.88% over the last year.

8. Interactive Brokers Group, Inc. (IBKR): Operates as an automated global electronic market maker and broker. Market cap of $697.22M. Dividend yield at 2.61%, payout ratio at 28.49%. The stock is currently trading at 0.14% above its 20-Day SMA, 2.32% above its 50-Day SMA, and 0.95% above its 200-Day SMA. TTM Diluted EPS at $1.40, MRQ Book Value Per Share at $12.59, Graham number at $19.91 (vs. current price at $15.52, implies a potential upside of 28.31%). The stock has lost 6.54% over the last year.

9. Dime Community Bancshares Inc. (DCOM): Operates as the holding company for The Dime Savings Bank of Williamsburgh that provides financial services and loans primarily for multifamily housing. Market cap of $479.42M. Dividend yield at 4.09%, payout ratio at 41.57%. The stock is currently trading at 3.94% above its 20-Day SMA, 12.94% above its 50-Day SMA, and 10.93% above its 200-Day SMA. TTM Diluted EPS at $1.33, MRQ Book Value Per Share at $10.49, Graham number at $17.72 (vs. current price at $13.93, implies a potential upside of 27.19%). The stock has lost 4.13% over the last year.

10. Fidelity National Financial, Inc. (FNF): Provides title insurance, mortgage services, specialty insurance, and information services in the United States. Market cap of $4.0B. Dividend yield at 2.63%, payout ratio at 38.85%. The stock is currently trading at 9.11% above its 20-Day SMA, 14.28% above its 50-Day SMA, and 17.55% above its 200-Day SMA. TTM Diluted EPS at $1.46, MRQ Book Value Per Share at $16.04, Graham number at $22.95 (vs. current price at $18.10, implies a potential upside of 26.82%). The stock has had a good month, gaining 13.5%.

11. Infinity Property and Casualty Corp. (IPCC): Provides personal automobile insurance with a concentration on nonstandard auto insurance in the United States. Market cap of $681.05M. Dividend yield at 1.25%, payout ratio at 15.63%. The stock is currently trading at 1.02% above its 20-Day SMA, 3.53% above its 50-Day SMA, and 7.70% above its 200-Day SMA. TTM Diluted EPS at $4.25, MRQ Book Value Per Share at $54.83, Graham number at $72.41 (vs. current price at $57.23, implies a potential upside of 26.52%). The stock has lost 7.15% over the last year.

12. Cohu, Inc. (COHU): Engages in the development, manufacture, sale, and servicing of test handling and burn-in related equipment, and thermal sub-systems for the semiconductor industry worldwide. Market cap of $319.64M. Dividend yield at 1.81%, payout ratio at 23.63%. The stock is currently trading at 8.93% above its 20-Day SMA, 18.09% above its 50-Day SMA, and 12.76% above its 200-Day SMA. TTM Diluted EPS at $1.00, MRQ Book Value Per Share at $12.11, Graham number at $16.51 (vs. current price at $13.24, implies a potential upside of 24.67%). The stock has had a couple of great days, gaining 5.84% over the last week.

13. Sempra Energy (SRE): Engages in the development of energy infrastructure, operation of utilities, and provision of energy-related products and services worldwide. Market cap of $13.95B. Dividend yield at 3.30%, payout ratio at 32.71%. The stock is currently trading at 2.91% above its 20-Day SMA, 6.89% above its 50-Day SMA, and 10.54% above its 200-Day SMA. TTM Diluted EPS at $5.55, MRQ Book Value Per Share at $40.20, Graham number at $70.85 (vs. current price at $56.85, implies a potential upside of 24.63%). The stock has gained 15.12% over the last year.

14. IdaCorp, Inc. (IDA): Engages in the generation, transmission, distribution, sale, and purchase of electric energy in the United States. Market cap of $2.12B. Dividend yield at 3.10%, payout ratio at 33.42%. The stock is currently trading at 1.20% above its 20-Day SMA, 2.97% above its 50-Day SMA, and 8.56% above its 200-Day SMA. TTM Diluted EPS at $3.60, MRQ Book Value Per Share at $33.29, Graham number at $51.93 (vs. current price at $41.98, implies a potential upside of 23.70%). The stock has gained 14.53% over the last year.

15. Ameriprise Financial Inc. (AMP): Provides financial planning, products, and services primarily in the United States. Market cap of $12.37B. Dividend yield at 2.05%, payout ratio at 16.89%. The stock is currently trading at 3.24% above its 20-Day SMA, 11.22% above its 50-Day SMA, and 7.35% above its 200-Day SMA. TTM Diluted EPS at $4.37, MRQ Book Value Per Share at $45.21, Graham number at $66.67 (vs. current price at $54.50, implies a potential upside of 22.34%). The stock has lost 8.97% over the last year.

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

Source: 15 Rallying Dividend Stocks Undervalued By The Graham Number