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

We began by screening the S&P 500 for stocks paying dividend yields above 2% and sustainable payout ratios below 50%. We then screened for those that appear undervalued relative to their EPS trends.

Based on the assumption that P/E is equal to a constant k, increases in EPS should be matched by proportionate increases in price. When they don't match up, a mispricing may have occurred. That is, if EPS rises faster than price, the stock may have more value to price in.

Of course there's no reason to expect P/E to stay at a constant - it's just a simplifying assumption for the sake of the screen.

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

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

1. Applied Materials Inc. (NASDAQ:AMAT): Provides manufacturing equipment, services, and software to the semiconductor, flat panel display, solar photovoltaic, and related industries worldwide. Dividend yield at 2.83%, payout ratio at 27.24%. The EPS estimate for the company's current year increased from 0.93 to 0.96 over the last 30 days, an increase of 3.23%. This increase came during a time when the stock price changed by 0% (from 12.71 to 12.71 over the last 30 days).

2. Chevron Corp. (NYSE:CVX): Engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. Dividend yield at 2.97%, payout ratio at 22.93%. The EPS estimate for the company's current year increased from 12.66 to 12.94 over the last 30 days, an increase of 2.21%. This increase came during a time when the stock price changed by 0.62% (from 108.41 to 109.08 over the last 30 days).

3. Deere & Company (NYSE:DE): Provides products and services primarily for agriculture and forestry worldwide. Dividend yield at 2.23%, payout ratio at 23.11%. The EPS estimate for the company's current year increased from 7.97 to 8.02 over the last 30 days, an increase of 0.63%. This increase came during a time when the stock price changed by -2.14% (from 84.19 to 82.39 over the last 30 days).

4. Dr Pepper Snapple Group, Inc. (NYSE:DPS): Engages in the manufacture and distribution of non-alcoholic beverages in the United States, Canada, and Mexico. Dividend yield at 3.54%, payout ratio at 43.11%. The EPS estimate for the company's current year increased from 2.91 to 2.94 over the last 30 days, an increase of 1.03%. This increase came during a time when the stock price changed by -2.12% (from 39.21 to 38.38 over the last 30 days).

5. Eastman Chemical Co. (NYSE:EMN): Engages in the manufacture and sale of chemicals, plastics, and fibers in the United States and internationally. Dividend yield at 2.02%, payout ratio at 21.16%. The EPS estimate for the company's current year increased from 4.85 to 4.93 over the last 30 days, an increase of 1.65%. This increase came during a time when the stock price changed by -5.33% (from 54.39 to 51.49 over the last 30 days).

6. Emerson Electric Co. (NYSE:EMR): Operates as a diversified manufacturing and technology company. Dividend yield at 3.10%, payout ratio at 45.71%. The EPS estimate for the company's current year increased from 3.48 to 3.5 over the last 30 days, an increase of 0.57%. This increase came during a time when the stock price changed by -0.67% (from 51.88 to 51.53 over the last 30 days).

7. Eaton Corporation (NYSE:ETN): Operates as a power management company worldwide. Dividend yield at 3.04%, payout ratio at 34.22%. The EPS estimate for the company's current year increased from 4.4 to 4.44 over the last 30 days, an increase of 0.91%. This increase came during a time when the stock price changed by -3.83% (from 51.94 to 49.95 over the last 30 days).

8. Genuine Parts Company (NYSE:GPC): Distributes automotive replacement parts, industrial replacement parts, office products, and electrical/electronic materials in the United States, Puerto Rico, Canada, and Mexico. Dividend yield at 3.15%, payout ratio at 49.82%. The EPS estimate for the company's current year increased from 3.97 to 4.02 over the last 30 days, an increase of 1.26%. This increase came during a time when the stock price changed by -1.35% (from 63.81 to 62.95 over the last 30 days).

9. Hormel Foods Corp. (NYSE:HRL): Produces and markets various meat and food products in the United States and Internationally. Dividend yield at 2.07%, payout ratio at 31.16%. The EPS estimate for the company's current year increased from 1.81 to 1.82 over the last 30 days, an increase of 0.55%. This increase came during a time when the stock price changed by -0.72% (from 29.13 to 28.92 over the last 30 days).

10. The Interpublic Group of Companies, Inc. (NYSE:IPG): Provides advertising and marketing services worldwide. Dividend yield at 2.06%, payout ratio at 21.34%. The EPS estimate for the company's current year increased from 0.75 to 0.81 over the last 30 days, an increase of 8.%. This increase came during a time when the stock price changed by 6.59% (from 10.92 to 11.64 over the last 30 days).

11. Marathon Petroleum Corporation (NYSE:MPC): Engages in refining, transporting, and marketing petroleum products primarily in the United States and internationally. Dividend yield at 2.28%, payout ratio at 6.70%. The EPS estimate for the company's current year increased from 5.2 to 5.65 over the last 30 days, an increase of 8.65%. This increase came during a time when the stock price changed by -0.05% (from 43.81 to 43.79 over the last 30 days).

12. Marathon Oil Corporation (NYSE:MRO): Operates as an international energy company with operations in the United States, Canada, Africa, the Middle East, and Europe. Dividend yield at 2.01%, payout ratio at 33.26%. The EPS estimate for the company's current year increased from 3.66 to 3.73 over the last 30 days, an increase of 1.91%. This increase came during a time when the stock price changed by -2.14% (from 34.56 to 33.82 over the last 30 days).

13. Occidental Petroleum Corporation (NYSE:OXY): Operates as an oil and gas exploration and production company primarily in the United States. Dividend yield at 2.20%, payout ratio at 23.07%. The EPS estimate for the company's current year increased from 8.36 to 8.42 over the last 30 days, an increase of 0.72%. This increase came during a time when the stock price changed by -6.18% (from 104.41 to 97.96 over the last 30 days).

14. Safeway Inc. (NYSE:SWY): Operates as a food and drug retailer in North America. Dividend yield at 2.72%, payout ratio at 36.31%. The EPS estimate for the company's current year increased from 1.84 to 1.96 over the last 30 days, an increase of 6.52%. This increase came during a time when the stock price changed by -5.33% (from 22.51 to 21.31 over the last 30 days).

15. Valero Energy Corp. (NYSE:VLO): Operates as an independent petroleum refining and marketing company. Dividend yield at 2.18%, payout ratio at 8.02%. The EPS estimate for the company's current year increased from 3.51 to 3.84 over the last 30 days, an increase of 9.4%. This increase came during a time when the stock price changed by 7.56% (from 25.53 to 27.46 over the last 30 days).

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

Source: 15 S&P 500 Dividend Stocks Undervalued By EPS Trends