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

We began by screening for dividend stocks with strong momentum: stocks that pay dividend yields above 2%, sustainable payout ratios below 50%, and those that are currently rallying above their 20-day, 50-day, and 200-day moving averages.

We then screened for those that may still be undervalued, by comparing price trends to changes in EPS estimates over the last month.

Based on the assumption that P/E is equal to a constant k, increases in EPS should be matched by increases in price. When they don't match up, a mispricing may have occurred.

We screened for stocks with faster growth in EPS estimates than price over the last month, which may indicate that these names are being undervalued.

Interactive Chart: Press Play to compare changes in market cap over the last two years for six of 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 will continue rallying higher? Use this list as a starting point for your own analysis.

List sorted by increase in EPS over the last 30 days.

1. Heartland Financial USA Inc. (NASDAQ:HTLF): Provides commercial and retail banking services to businesses and individuals. Market cap at $318.75M, most recent closing price at $19.43. Dividend yield at 2.07%, payout ratio at 22.46%. The stock is currently rallying 11.44% above its 20-day moving average, 14.96% above its 50-day MA, and 23.87% above its 200-day MA. The EPS estimate for the company's current year increased from 1.43 to 2.04 over the last 30 days, an increase of 42.66%. This increase came during a time when the stock price changed by 24.39% (from 15.54 to 19.33 over the last 30 days).

2. Montpelier Re Holdings Ltd. (NYSE:MRH): Provides insurance and reinsurance solutions. Market cap at $1.23B, most recent closing price at $20.58. Dividend yield at 2.02%, payout ratio at 28.81%. The stock is currently rallying 3.58% above its 20-day moving average, 7.64% above its 50-day MA, and 17.08% above its 200-day MA. The EPS estimate for the company's current year increased from 2.19 to 2.96 over the last 30 days, an increase of 35.16%. This increase came during a time when the stock price changed by 7.88% (from 19.28 to 20.8 over the last 30 days).

3. Peoples Bancorp Inc. (NASDAQ:PEBO): Operates as a holding company for Peoples Bank, National Association that provides financial products and services. Market cap at $198.54M, most recent closing price at $18.62. Dividend yield at 2.37%, payout ratio at 19.93%. The stock is currently rallying 7.07% above its 20-day moving average, 9.48% above its 50-day MA, and 35.58% above its 200-day MA. The EPS estimate for the company's current year increased from 1.47 to 1.88 over the last 30 days, an increase of 27.89%. This increase came during a time when the stock price changed by 6.9% (from 17.39 to 18.59 over the last 30 days).

4. MicroFinancial Inc. (NASDAQ:MFI): Operates as a specialized commercial finance company that provides microticket equipment leasing and rental, and other financing services in the United States. Market cap at $100.1M, most recent closing price at $7.13. Dividend yield at 3.43%, payout ratio at 34.97%. The stock is currently rallying 2.99% above its 20-day moving average, 5.65% above its 50-day MA, and 20.51% above its 200-day MA. The EPS estimate for the company's current year increased from 0.65 to 0.74 over the last 30 days, an increase of 13.85%. This increase came during a time when the stock price changed by 0.72% (from 6.95 to 7 over the last 30 days).

5. Mine Safety Appliances Co. (NYSE:MSA): Develops, manufactures, and supplies health and safety products used by workers in the fire service, homeland security, construction, and other industries, as well as the military. Market cap at $1.5B, most recent closing price at $41.07. Dividend yield at 2.55%, payout ratio at 48.02%. The stock is currently rallying 0.08% above its 20-day moving average, 2.77% above its 50-day MA, and 22.61% above its 200-day MA. The EPS estimate for the company's current year increased from 2.31 to 2.59 over the last 30 days, an increase of 12.12%. This increase came during a time when the stock price changed by 1.42% (from 40.21 to 40.78 over the last 30 days).

6. Destination Maternity Corporation (NASDAQ:DEST): Engages in the design and retail of maternity apparel. Market cap at $260.41M, most recent closing price at $19.66. Dividend yield at 3.58%, payout ratio at 47.87%. The stock is currently rallying 3.28% above its 20-day moving average, 5.22% above its 50-day MA, and 23.55% above its 200-day MA. The EPS estimate for the company's current year increased from 1.35 to 1.51 over the last 30 days, an increase of 11.85%. This increase came during a time when the stock price changed by 3.% (from 19.01 to 19.58 over the last 30 days).

7. Huntsman Corporation (NYSE:HUN): Engages in the manufacture and sale of differentiated organic and inorganic chemical products worldwide. Market cap at $3.55B, most recent closing price at $15.12. Dividend yield at 2.70%, payout ratio at 28.57%. The stock is currently rallying 5.24% above its 20-day moving average, 7.20% above its 50-day MA, and 23.30% above its 200-day MA. The EPS estimate for the company's current year increased from 1.82 to 2.03 over the last 30 days, an increase of 11.54%. This increase came during a time when the stock price changed by 3.71% (from 14.3 to 14.83 over the last 30 days).

8. PacWest Bancorp (NASDAQ:PACW): Operates as the bank holding company for Pacific Western Bank that provides commercial banking products and services to small to medium size businesses, the owners and employees of those businesses, and households primarily in Southern California. Market cap at $889.86M, most recent closing price at $25.08. Dividend yield at 2.89%, payout ratio at 32.50%. The stock is currently rallying 7.19% above its 20-day moving average, 8.32% above its 50-day MA, and 31.13% above its 200-day MA. The EPS estimate for the company's current year increased from 1.62 to 1.8 over the last 30 days, an increase of 11.11%. This increase came during a time when the stock price changed by 7.18% (from 23.27 to 24.94 over the last 30 days).

9. The Allstate Corporation (NYSE:ALL): Engages in the personal property and casualty insurance, life insurance, retirement, and investment products businesses primarily in the United States. Market cap at $16.8B, most recent closing price at $34.01. Dividend yield at 2.57%, payout ratio at 41.38%. The stock is currently rallying 3.63% above its 20-day moving average, 5.15% above its 50-day MA, and 22.40% above its 200-day MA. The EPS estimate for the company's current year increased from 3.69 to 4.02 over the last 30 days, an increase of 8.94%. This increase came during a time when the stock price changed by 5.59% (from 32.39 to 34.2 over the last 30 days).

10. Huntington Bancshares Incorporated (NASDAQ:HBAN): Operates as the holding company for The Huntington National Bank that provides commercial and consumer banking services. Market cap at $5.61B, most recent closing price at $6.58. Dividend yield at 2.47%, payout ratio at 20.88%. The stock is currently rallying 1.75% above its 20-day moving average, 5.08% above its 50-day MA, and 19.95% above its 200-day MA. The EPS estimate for the company's current year increased from 0.59 to 0.64 over the last 30 days, an increase of 8.47%. This increase came during a time when the stock price changed by 2.37% (from 6.34 to 6.49 over the last 30 days).

11. Symetra Financial Corporation (NYSE:SYA): Operates as a financial services company in the life insurance industry in the United States. Market cap at $1.4B, most recent closing price at $11.79. Dividend yield at 2.37%, payout ratio at 13.13%. The stock is currently rallying 2.52% above its 20-day moving average, 5.74% above its 50-day MA, and 18.93% above its 200-day MA. The EPS estimate for the company's current year increased from 1.33 to 1.44 over the last 30 days, an increase of 8.27%. This increase came during a time when the stock price changed by 5.65% (from 11.16 to 11.79 over the last 30 days).

12. BOK Financial Corporation (NASDAQ:BOKF): Offers a range of financial products and services to commercial and industrial customers, and other financial institutions and consumers. Market cap at $3.89B, most recent closing price at $57.31. Dividend yield at 2.66%, payout ratio at 27.29%. The stock is currently rallying 3.88% above its 20-day moving average, 3.99% above its 50-day MA, and 10.13% above its 200-day MA. The EPS estimate for the company's current year increased from 4.19 to 4.52 over the last 30 days, an increase of 7.88%. This increase came during a time when the stock price changed by 5.33% (from 54.25 to 57.14 over the last 30 days).

13. BB&T Corporation (NYSE:BBT): Operates as the financial holding company for Branch Banking and Trust Company that provides banking and trust services to small and mid-size businesses, public agencies, local governments, and individuals in the United States. Market cap at $22.05B, most recent closing price at $31.64. Dividend yield at 2.53%, payout ratio at 31.72%. The stock is currently rallying 1.07% above its 20-day moving average, 3.62% above its 50-day MA, and 25.29% above its 200-day MA. The EPS estimate for the company's current year increased from 2.52 to 2.68 over the last 30 days, an increase of 6.35%. This increase came during a time when the stock price changed by 3.07% (from 30.63 to 31.57 over the last 30 days).

14. Provident Financial Services, Inc. (NYSE:PFS): Operates as the holding company for The Provident Bank that provides banking services to individuals, families, and businesses in New Jersey. Market cap at $864.18M, most recent closing price at $14.53. Dividend yield at 3.62%, payout ratio at 45.87%. The stock is currently rallying 3.29% above its 20-day moving average, 2.70% above its 50-day MA, and 11.70% above its 200-day MA. The EPS estimate for the company's current year increased from 1.12 to 1.18 over the last 30 days, an increase of 5.36%. This increase came during a time when the stock price changed by 2.79% (from 13.97 to 14.36 over the last 30 days).

15. Great Southern Bancorp Inc. (NASDAQ:GSBC): Operates as the bank holding company for Great Southern Bank that offers various banking products and services in Missouri, Iowa, Kansas, Nebraska, and Arkansas. Market cap at $307.8M, most recent closing price at $23.0. Dividend yield at 3.16%, payout ratio at 33.98%. The stock is currently rallying 1.54% above its 20-day moving average, 1.40% above its 50-day MA, and 12.34% above its 200-day MA. The EPS estimate for the company's current year increased from 1.79 to 1.88 over the last 30 days, an increase of 5.03%. This increase came during a time when the stock price changed by 1.33% (from 22.5 to 22.8 over the last 30 days).

16. National Penn Bancshares Inc. (NASDAQ:NPBC): Operates as the bank holding company for National Penn Bank that provides commercial banking products and services to residents and businesses primarily in eastern and central Pennsylvania. Market cap at $1.37B, most recent closing price at $9.04. Dividend yield at 3.11%, payout ratio at 21.00%. The stock is currently rallying 0.26% above its 20-day moving average, 1.72% above its 50-day MA, and 12.60% above its 200-day MA. The EPS estimate for the company's current year increased from 0.6 to 0.63 over the last 30 days, an increase of 5%. This increase came during a time when the stock price changed by 0.11% (from 8.99 to 9 over the last 30 days).

*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: 16 Rallying Dividend Stocks Undervalued By EPS Trends