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Do you prefer stocks that offer the opportunity for both dividend income and price appreciation? For ideas on how to start your search, we ran a screen.

We began by screening dividend stocks, with dividend yields above 1% and sustainable payout ratios below 50%, for those that have strong company liquidity, with current ratios above 3.

We then screened for those that appear undervalued relative to the Graham number, a measure of maximum fair value created by the "godfather of value investing" Benjamin Graham.

It is based off of a stock's EPS and book value per share (BVPS).

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

The equation assumes that P/E should not be higher than 15 and P/BV should not be higher than 1.5. Stocks trading well below their Graham Number may be undervalued.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

Do you think these stocks offer both growth and income? Use this list as a starting point for your own analysis.

1. Hecla Mining Co. (NYSE:HL): Engages in the discovery, acquisition, development, production, and marketing of silver, gold, lead, and zinc. Dividend yield at 1.08%, payout ratio at 3.72%. Current ratio at 3.38. Diluted TTM earnings per share at 0.51, and a MRQ book value per share value at 4, implies a Graham Number fair value = sqrt(22.5*0.51*4) = $6.77. Based on the stock's price at $4.87, this implies a potential upside of 39.12% from current levels.

2. Janus Capital Group, Inc. (NYSE:JNS): A publicly owned asset management holding company. Dividend yield at 2.19%, payout ratio at 19.59%. Current ratio at 5.62. Diluted TTM earnings per share at 0.78, and a MRQ book value per share value at 7.02, implies a Graham Number fair value = sqrt(22.5*0.78*7.02) = $11.10. Based on the stock's price at $9.16, this implies a potential upside of 21.17% from current levels.

3. National Presto Industries Inc. (NYSE:NPK): Engages in the production and sale of housewares/small appliances, defense products, and absorbent products in North America. Dividend yield at 1.27%, payout ratio at 12.11%. Current ratio at 5.75. Diluted TTM earnings per share at 8.26, and a MRQ book value per share value at 46.96, implies a Graham Number fair value = sqrt(22.5*8.26*46.96) = $93.42. Based on the stock's price at $79.59, this implies a potential upside of 17.38% from current levels.

4. Reliance Steel & Aluminum Co. (NYSE:RS): Operates metals service centers. Dividend yield at 1.08%, payout ratio at 10.46%. Current ratio at 3.95. Diluted TTM earnings per share at 4.58, and a MRQ book value per share value at 41.91, implies a Graham Number fair value = sqrt(22.5*4.58*41.91) = $65.72. Based on the stock's price at $55.36, this implies a potential upside of 18.71% from current levels.

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

Source: 4 Highly Liquid Dividend Stocks Undervalued By The Graham Number