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Do you prefer stocks that offer both value and the opportunity for growth? For a closer look at names that might offer the best of both worlds, 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 these names for those that appear undervalued relative to earnings growth, with PEG below 1.

Finally we screened these names to find those with strong sales trends, with faster growth in revenue than inventory year-over-year. Since inventory represents the portion of goods not yet sold, faster growth in revenue than inventory is considered a good sign.

To screen for healthy liquidity, we also only focused on those companies with inventory declining as a percent of current assets.

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 value and strong growth? Use this list as a starting point for your own analysis.

List sorted by potential upside implied by the Graham Number.

1. Chevron Corporation (NYSE:CVX): Engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. Market cap at $202.08B, most recent closing price at $102.44. Dividend yield at 3.16%, payout ratio at 22.93%. Diluted TTM earnings per share at 13.44, and a MRQ book value per share value at 61.27, implies a Graham Number fair value = sqrt(22.5*13.44*61.27) = $136.12. Based on the stock's price at $102.52, this implies a potential upside of 32.77% from current levels.

Revenue grew by 11.03% during the most recent quarter ($59,985M vs. $54,027M y/y). Inventory grew by 0.91% during the same time period ($5,543M vs. $5,493M y/y). Inventory, as a percentage of current assets, decreased from 11.25% to 10.41% during the most recent quarter (comparing 3 months ending 2011-12-31 to 3 months ending 2010-12-31).

2. Murphy Oil Corporation (NYSE:MUR): Engages in the exploration and production of oil and gas properties worldwide. Market cap at $10.28B, most recent closing price at $52.94. Dividend yield at 2.08%, payout ratio at 28.71%. Diluted TTM earnings per share at 4.49, and a MRQ book value per share value at 45.31, implies a Graham Number fair value = sqrt(22.5*4.49*45.31) = $67.66. Based on the stock's price at $53.56, this implies a potential upside of 26.32% from current levels.

Revenue grew by 22.53% during the most recent quarter ($6,817.51M vs. $5,564.07M y/y). Inventory grew by -12.54% during the same time period ($666.64M vs. $762.21M y/y). Inventory, as a percentage of current assets, decreased from 21.47% to 19.34% during the most recent quarter (comparing 3 months ending 2011-12-31 to 3 months ending 2010-12-31).

3. Time Warner Inc. (NYSE:TWX): Operates as a media and entertainment company in the United States and internationally. Market cap at $35.03B, most recent closing price at $36.27. Dividend yield at 2.87%, payout ratio at 34.73%. Diluted TTM earnings per share at 2.71, and a MRQ book value per share value at 30.76, implies a Graham Number fair value = sqrt(22.5*2.71*30.76) = $43.31. Based on the stock's price at $36.6, this implies a potential upside of 18.33% from current levels.

Revenue grew by 4.88% during the most recent quarter ($8,193M vs. $7,812M y/y). Inventory grew by -1.56% during the same time period ($1,890M vs. $1,920M y/y). Inventory, as a percentage of current assets, decreased from 14.41% to 14.07% during the most recent quarter (comparing 3 months ending 2011-12-31 to 3 months ending 2010-12-31).

*Accounting data sourced from Google Finance, 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.

Source: 3 Undervalued S&P 500 Dividend Stocks With Positive Sales Trends