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. (NASDAQ: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. (NYSE: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. (NASDAQ: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. (NYSE: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. (NYSE: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. (NYSE: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. (NYSE: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. (NASDAQ: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. (NASDAQ: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 (NYSE: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. (NYSE: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.

**Disclosure: **I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.