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Interested in stocks that can offer both value and growth? For a closer look at potentially undervalued dividend stocks, we ran a screen you might be interested in.

We began by screening for high dividend yield stocks, with dividend yields above 4% and sustainable payout ratios below 50%.

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.

(click to enlarge)

Do you think these dividend stocks should be trading higher? Use this list as a starting point for your own analysis.

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

1. American Greetings Corp. (AM-OLD): Engages in the design, manufacture, and sale of greeting cards and other social expression products worldwide. Market cap at $504.04M, most recent closing price at $14.28. Dividend yield at 4.18%, payout ratio at 40.84%. The EPS estimate for the company's current year increased from 2.1 to 2.25 over the last 30 days, an increase of 7.14%. This increase came during a time when the stock price changed by -5.05% (from 15.06 to 14.3 over the last 30 days).

2. Aircastle LTD (AYR): Engages in the acquisition, lease, and sale of high-utility commercial jet aircraft to passenger and cargo airlines worldwide. Market cap at $812.09M, most recent closing price at $11.13. Dividend yield at 5.34%, payout ratio at 35.54%. The EPS estimate for the company's current year increased from 1.3 to 1.39 over the last 30 days, an increase of 6.92%. This increase came during a time when the stock price changed by -5.2% (from 11.72 to 11.11 over the last 30 days).

3. Textainer Group Holdings Limited (TGH): Engages in the purchase, ownership, management, leasing, and disposal of intermodal containers worldwide. Market cap at $1.65B, most recent closing price at $33.07. Dividend yield at 4.79%, payout ratio at 33.00%. The EPS estimate for the company's current year increased from 3.84 to 4.07 over the last 30 days, an increase of 5.99%. This increase came during a time when the stock price changed by 3.23% (from 32.83 to 33.89 over the last 30 days).

4. Olin Corp. (OLN): Engages in the manufacture and sale of chlor alkali products in the United States and internationally. Market cap at $1.51B, most recent closing price at $18.61. Dividend yield at 4.24%, payout ratio at 43.69%. The EPS estimate for the company's current year increased from 1.88 to 1.99 over the last 30 days, an increase of 5.85%. This increase came during a time when the stock price changed by -12.52% (from 21.16 to 18.51 over the last 30 days).

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

Source: 4 High Dividend Yield Stocks Undervalued By EPS Trends