Do you prefer stocks that offer both value and growth? For a look at some interesting dividend stocks from the S&P 500, 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 also appear undervalued relative to the Graham Number. The Graham Number is 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 top six 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 should be trading higher? Use this list as a starting point for your own analysis.

List sorted by potential upside implied by the Graham Number.

** 1. Huntington Bancshares Incorporated (HBAN):** Operates as the holding company for The Huntington National Bank that provides commercial and consumer banking services. Market cap at $5.76B, most recent closing price at $6.56. Dividend yield at 2.41%, payout ratio at 20.87%. Diluted TTM earnings per share at 0.62, and a MRQ book value per share value at 5.97, implies a Graham Number fair value = sqrt(22.5*0.62*5.97) = $9.13. Based on the stock's price at $6.73, this implies a potential upside of 35.6% from current levels.

* 2. Northrop Grumman Corporation (NOC):* Provides products, services, and solutions in aerospace, electronics, information systems, shipbuilding, and technical service sectors. Market cap at $15.8B, most recent closing price at $62.38. Dividend yield at 3.18%, payout ratio at 25.43%. Diluted TTM earnings per share at 7.7, and a MRQ book value per share value at 41.79, implies a Graham Number fair value = sqrt(22.5*7.7*41.79) = $85.09. Based on the stock's price at $63.75, this implies a potential upside of 33.47% from current levels.

** 3. CenterPoint Energy, Inc. (CNP):** Operates as a public utility holding company in the United States. Market cap at $8.41B, most recent closing price at $20.0. Dividend yield at 4.11%, payout ratio at 43.68%. Diluted TTM earnings per share at 3.17, and a MRQ book value per share value at 9.91, implies a Graham Number fair value = sqrt(22.5*3.17*9.91) = $26.59. Based on the stock's price at $20.05, this implies a potential upside of 32.6% from current levels.

** 4. Chevron Corporation (CVX):** Engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. Market cap at $209.08B, most recent closing price at $104.11. Dividend yield at 3.40%, 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 $106.2, this implies a potential upside of 28.17% from current levels.

** 5. AFLAC Inc. (AFL):** Provides supplemental health and life insurance. Market cap at $20.73B, most recent closing price at $43.37. Dividend yield at 2.98%, payout ratio at 24.98%. Diluted TTM earnings per share at 5.03, and a MRQ book value per share value at 29.18, implies a Graham Number fair value = sqrt(22.5*5.03*29.18) = $57.47. Based on the stock's price at $45.17, this implies a potential upside of 27.22% from current levels.

* 6. State Street Corp. (STT):* Provides various financial services and products to the institutional investors worldwide. Market cap at $22.57B, most recent closing price at $45.64. Dividend yield at 2.08%, payout ratio at 20.94%. Diluted TTM earnings per share at 3.71, and a MRQ book value per share value at 40.15, implies a Graham Number fair value = sqrt(22.5*3.71*40.15) = $57.89. Based on the stock's price at $46.32, this implies a potential upside of 24.98% from current levels.

* 7. Murphy Oil Corporation (MUR):* Engages in the exploration and production of oil and gas properties worldwide. Market cap at $10.06B, most recent closing price at $50.17. Dividend yield at 2.12%, 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 $54.45, this implies a potential upside of 24.25% from current levels.

* 8. Whirlpool Corp. (WHR):* Engages in the manufacture and marketing of home appliances worldwide. Market cap at $4.85B, most recent closing price at $62.26. Dividend yield at 3.18%, payout ratio at 48.72%. Diluted TTM earnings per share at 4.99, and a MRQ book value per share value at 54.69, implies a Graham Number fair value = sqrt(22.5*4.99*54.69) = $78.36. Based on the stock's price at $64.52, this implies a potential upside of 21.45% from current levels.

** 9. Wells Fargo & Company (WFC):** Provides retail, commercial, and corporate banking services primarily in the United States. Market cap at $177.02B, most recent closing price at $33.18. Dividend yield at 2.64%, payout ratio at 19.80%. Diluted TTM earnings per share at 2.9, and a MRQ book value per share value at 25.48, implies a Graham Number fair value = sqrt(22.5*2.9*25.48) = $40.77. Based on the stock's price at $33.77, this implies a potential upside of 20.74% from current levels.

** 10. Ameriprise Financial Inc. (AMP):** Provides financial planning, products, and services primarily in the United States. Market cap at $11.71B, most recent closing price at $51.68. Dividend yield at 2.65%, payout ratio at 26.77%. Diluted TTM earnings per share at 4.5, and a MRQ book value per share value at 41.51, implies a Graham Number fair value = sqrt(22.5*4.5*41.51) = $64.83. Based on the stock's price at $54.08, this implies a potential upside of 19.88% from current levels.

** 11. Public Service Enterprise Group Inc. (PEG):** Operates in the energy industry primarily in the northeastern and mid Atlantic United States. Market cap at $15.94B, most recent closing price at $31.63. Dividend yield at 4.51%, payout ratio at 49.25%. Diluted TTM earnings per share at 2.96, and a MRQ book value per share value at 20.3, implies a Graham Number fair value = sqrt(22.5*2.96*20.3) = $36.77. Based on the stock's price at $31.19, this implies a potential upside of 17.89% from current levels.

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

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