Do you prefer stocks that pay part of their return in dividend income? For a closer look at interesting dividend stocks, we ran a screen.

We began with a list of dividend champions from DRiP Investing. These stocks have consistently raised their dividend over the last 25 years. We then screened these names for those paying dividend yields above 2% and sustainable payout ratios below 50%.

Finally, we screened to find 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 market cap over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.*

Do you think these stocks offer solid value? Use this list as a starting point for your own analysis.

List sorted by potential upside implied by the Graham Number.

** 1. The Chubb Corporation (NYSE:CB):** Provides property and casualty insurance to businesses and individuals. Market cap at $19.11B. Price at $71.84. Dividend yield at 2.32%, payout ratio at 26.24%. Diluted TTM earnings per share at 5.76, and a MRQ book value per share value at 57.16, implies a Graham Number fair value = sqrt(22.5*5.76*57.16) = $86.07. Based on the stock's price at $69.66, this implies a potential upside of 23.56% from current levels.

** 2. Community Trust Bancorp Inc. (NASDAQ:CTBI):** Operates as the holding company for Community Trust Bank, Inc. Market cap at $493.85M. Price at $32.20. Dividend yield at 3.90%, payout ratio at 48.82%. Diluted TTM earnings per share at 2.53, and a MRQ book value per share value at 23.93, implies a Graham Number fair value = sqrt(22.5*2.53*23.93) = $36.91. Based on the stock's price at $30.26, this implies a potential upside of 21.97% from current levels.

* 3. AFLAC Inc. (NYSE:AFL):* Provides supplemental health and life insurance. Market cap at $19.99B. Price at $42.37. Dividend yield at 3.08%, payout ratio at 29.26%. Diluted TTM earnings per share at 4.18, and a MRQ book value per share value at 28.96, implies a Graham Number fair value = sqrt(22.5*4.18*28.96) = $52.19. Based on the stock's price at $42.88, this implies a potential upside of 21.71% from current levels.

** 4. Archer Daniels Midland Company (NYSE:ADM):** Procures, transports, stores, processes, and merchandises agricultural commodities and products in the United States and internationally. Market cap at $20.46B. Price at $30.79. Dividend yield at 2.26%, payout ratio at 28.49%. Diluted TTM earnings per share at 2.27, and a MRQ book value per share value at 27.16, implies a Graham Number fair value = sqrt(22.5*2.27*27.16) = $37.25. Based on the stock's price at $30.75, this implies a potential upside of 21.12% from current levels.

*BVPS and EPS 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.