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Do you prefer stocks that offer both income and growth? For a closer look at some potentially undervalued dividend stocks, we ran a screen.

We began by screening for stocks paying big dividends, with dividend yields above 4% 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 analyst ratings over the last two years for up to 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 stocks offer the best of both worlds? Use this list as a starting point for your own analysis.

List sorted by potential upside implied by the Graham Number.

1. Citizens & Northern Corp. (CZNC): Operates as the holding for Citizens & Northern Bank, which provides various banking and mortgage products and services to individual and corporate customers in north central Pennsylvania and southern New York. Market cap at $220.69M, most recent closing price at $18.27. Dividend yield at 4.43%, payout ratio at 30.18%. Diluted TTM earnings per share at 1.92, and a MRQ book value per share value at 14.06, implies a Graham Number fair value = sqrt(22.5*1.92*14.06) = $24.65. Based on the stock's price at $18.02, this implies a potential upside of 36.77% from current levels.

2. GAIN Capital Holdings, Inc. (GCAP): Operates as an online provider of retail and institutional foreign exchange trading and related services. (DISCLOSURE: GAIN Capital has a non-controlling interest in the parent company of Kapitall). Market cap at $156.88M, most recent closing price at $4.50. Dividend yield at 4.45%, payout ratio at 26.63%. Diluted TTM earnings per share at 0.33, and a MRQ book value per share value at 4.76, implies a Graham Number fair value = sqrt(22.5*0.33*4.76) = $5.94. Based on the stock's price at $4.44, this implies a potential upside of 33.9% from current levels.

3. Dime Community Bancshares Inc. (DCOM): Operates as the holding company for The Dime Savings Bank of Williamsburgh that provides financial services and loans primarily for multifamily housing. Market cap at $478.94M, most recent closing price at $13.62. Dividend yield at 4.13%, payout ratio at 42.12%. Diluted TTM earnings per share at 1.37, and a MRQ book value per share value at 10.79, implies a Graham Number fair value = sqrt(22.5*1.37*10.79) = $18.24. Based on the stock's price at $13.64, this implies a potential upside of 33.71% from current levels.

4. CenterPoint Energy, Inc. (CNP): Operates as a public utility holding company in the United States. Market cap at $8.58B, most recent closing price at $19.98. Dividend yield at 4.03%, payout ratio at 44.07%. Diluted TTM earnings per share at 3.16, and a MRQ book value per share value at 10.03, implies a Graham Number fair value = sqrt(22.5*3.16*10.03) = $26.70. Based on the stock's price at $20.17, this implies a potential upside of 32.4% from current levels.

5. Harte-Hanks Inc. (HHS): Operates as a direct and targeted marketing company that provides direct marketing services and shopper advertising opportunities to local, regional, national, and international customer and business-to-business marketers. Market cap at $529.83M, most recent closing price at $8.44. Dividend yield at 4.04%, payout ratio at 47.92%. Diluted TTM earnings per share at 0.68, and a MRQ book value per share value at 7.14, implies a Graham Number fair value = sqrt(22.5*0.68*7.14) = $10.45. Based on the stock's price at $8.49, this implies a potential upside of 23.11% from current levels.

6. FutureFuel Corp. (FF): Engages in the manufacture and sale of specialty chemicals and bio-based products primarily in the United States. Market cap at $409.07M, most recent closing price at $9.95. Dividend yield at 4.04%, payout ratio at 42.12%. Diluted TTM earnings per share at 0.94, and a MRQ book value per share value at 7.08, implies a Graham Number fair value = sqrt(22.5*0.94*7.08) = $12.24. Based on the stock's price at $9.97, this implies a potential upside of 22.74% from current levels.

7. SeaCube Container Leasing Ltd. (BOX-OLD): Operates as a container leasing company worldwide. Market cap at $368.47M, most recent closing price at $18.58. Dividend yield at 6.17%, payout ratio at 46.85%. Diluted TTM earnings per share at 1.99, and a MRQ book value per share value at 11.26, implies a Graham Number fair value = sqrt(22.5*1.99*11.26) = $22.45. Based on the stock's price at $18.36, this implies a potential upside of 22.3% from current levels.

8. Washington Banking Co. (WBCO): Operates as the bank holding company for Whidbey Island Bank that provides community commercial banking services in northwestern Washington. Market cap at $211.41M, most recent closing price at $13.68. Dividend yield at 4.08%, payout ratio at 19.40%. Diluted TTM earnings per share at 1.09, and a MRQ book value per share value at 11.28, implies a Graham Number fair value = sqrt(22.5*1.09*11.28) = $16.63. Based on the stock's price at $13.82, this implies a potential upside of 20.35% from current levels.

9. Merchants Bancshares Inc. (MBVT): Operates as the bank holding company for The Merchants Bank that provides commercial banking products and services in Vermont. Market cap at $163.11M, most recent closing price at $26.36. Dividend yield at 4.28%, payout ratio at 44.32%. Diluted TTM earnings per share at 2.43, and a MRQ book value per share value at 17.97, implies a Graham Number fair value = sqrt(22.5*2.43*17.97) = $31.35. Based on the stock's price at $26.16, this implies a potential upside of 19.82% from current levels.

10. Universal Health Realty Income Trust (UHT): Operates as a real estate investment trust in the United States. Market cap at $499.83M, most recent closing price at $39.56. Dividend yield at 6.19%, payout ratio at 38.87%. Diluted TTM earnings per share at 6.25, and a MRQ book value per share value at 15.06, implies a Graham Number fair value = sqrt(22.5*6.25*15.06) = $46.02. Based on the stock's price at $39.66, this implies a potential upside of 16.04% 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 $16.1B, most recent closing price at $31.75. Dividend yield at 4.46%, payout ratio at 48.61%. Diluted TTM earnings per share at 2.89, and a MRQ book value per share value at 21, implies a Graham Number fair value = sqrt(22.5*2.89*21) = $36.95. Based on the stock's price at $31.89, this implies a potential upside of 15.88% from current levels.

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

Source: 11 High Yield Dividend Stocks Undervalued By The Graham Number