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Do you prefer stocks that pay part of their return in dividend income? For ideas on how to start your search, we ran a screen.

We began by screening for stocks paying dividend yields above 4% and sustainable payout ratios below 50%. We then screened for those that appear undervalued relative to the ratio levered free cash flow/enterprise value.

Levered free cash flow is the free cash flow after deducting interest payments on outstanding debt. Enterprise value is the sum of the firm's value from all ownership sources: market cap, outstanding debt, and preferred shares. The higher the ratio, the more undervalued the company appears.

Interactive Chart: Press Play to compare changes in market cap over the last two years for the 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 dividend stocks have more value to price in? Use this list as a starting point for your own analysis.

1. Deluxe Corp. (NYSE:DLX): Provides various personalized printed products, promotional products, and merchandising materials to small businesses and financial institutions in the United States, Canada, and Europe. Dividend yield at 4.20%, payout ratio at 35.56%. Levered free cash flow at $209.24M vs. enterprise value at $1.92B (implies a LFCF/EV ratio at 10.9%).

2. Friedman Industries Inc. (NYSEMKT:FRD): Engages in steel processing, pipe manufacturing and processing, and steel and pipe distribution activities in the United States. Dividend yield at 4.97%, payout ratio at 37.16%. Levered free cash flow at $5.65M vs. enterprise value at $51.69M (implies a LFCF/EV ratio at 10.93%).

3. Gannett Co., Inc. (NYSE:GCI): Operates as a media and marketing solutions company in the United States and internationally. Dividend yield at 5.18%, payout ratio at 12.47%. Levered free cash flow at $637.24M vs. enterprise value at $5.25B (implies a LFCF/EV ratio at 12.14%).

4. Statoil ASA (NYSE:STO): Engages in the exploration, production, transportation, refining, and marketing of petroleum and petroleum-derived products. Dividend yield at 4.15%, payout ratio at 25.25%. Levered free cash flow at $11.62B vs. enterprise value at $102.31B (implies a LFCF/EV ratio at 11.36%).

*LFCF/EV data sourced from Yahoo! Finance, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 4 High Dividend Yield Stocks Undervalued By Levered Free Cash Flows