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Do you consider yourself a dividend investor, looking for strong yields and sustainable payouts? One place to search is among large cap stocks, which can offer stability not often found among smaller cap peers. Today we focused on large cap stocks with commendable dividends, yet that also look undervalued from their price-multiple ratios. Our screen produced a diverse list of companies - we hope you enjoy.

The Price/Earnings ratio is one of the most commonly used price-multiple metrics. Often, EPS from the last four quarters is used to derive this number. A firm that has a high P/E ratio generally indicates that investors have high expectations of the firm relative to future earnings growth. By the opposite token, investors generally have lower expectations of a firm with a low P/E ratio. A firm that holds a P/E below 10 could be viewed as having "value investment" potential. One thing to remember is that EPS is an accounting measure that could be potentially manipulated. Thus the P/E is only as good as the quality of the earnings.

The Price/Book Value Ratio is a great price-multiple valuation metric to find companies that could be potentially undervalued or overvalued. If a firm has a Price/Book Value Ratio of less than 1 it is stated to be trading below "break up" value. A lower P/BV Ratio can indicate a potentially mispriced company or indicate that something is fundamentally wrong with it.

We first looked for large cap dividend stocks. We then looked for businesses that are trading at a discount (P/E<10)(P/BV<1). Next, we then screened for businesses that analysts rate as "Buy" or "Strong Buy" (mean recommendation < 3). We did not screen out any sectors.

Do you think these large-cap stocks will offer healthy returns? Use our list along with your own analysis.

1) France Telecom (FTE)

Sector:Technology
Industry:Telecom Services - Foreign
Market Cap:$31.42B
Beta:0.78

France Telecom has a Dividend Yield of 15.70%, a Payout Ratio of 95.07%, a Price/Earnings Ratio of 6.66, a Price/Book Value Ratio of 0.92, and a Analysts' Rating of 2.00. The short interest was 0.14% as of 06/08/2012. France Tlcom SA provides fixed telephony and mobile telecommunications, data transmission, Internet and multimedia, and other value-added services to consumers, businesses, and telecommunications operators under the Orange and France Telecom brand names. It also offers personal and home communication services, legacy and mature network services, and international carriers and shared services for enterprises; VoIP, image, and videoconferencing services; and data infrastructures, such as satellite access, WiFi, and fiber optics. In addition, the company provides platform services, including customer relationship management, messaging, hosting, cloud computing, security solutions, infrastructure applications management, and machine-to-machine services; collaborative services comprising consulting, integration, and project management; and sales of equipment associated with integration services.

2) BHP Billiton plc (NYSE:BBL)

Sector:Basic Materials
Industry:Industrial Metals & Minerals
Market Cap:$149.86B
Beta:1.57

BHP Billiton plc has a Dividend Yield of 3.91%, a Payout Ratio of 25.60%, a Price/Earnings Ratio of 6.63, a Price/Book Value Ratio of 0.94, and a Analysts' Rating of 2.50. The short interest was 0.05% as of 06/08/2012. BHP Billiton Plc, together with its subsidiaries, operates as a diversified natural resources company. The company engages in the exploration, development, production, and marketing of oil and gas properties. It also involves in mining of bauxite, refining of bauxite into alumina, and smelting of alumina into aluminum metal; and mining of copper, silver, lead, zinc, molybdenum, uranium, gold, diamond, titanium, nickel, iron ore, metallurgical coal, and thermal or steaming coal.

3) JPMorgan Chase & Co. (NYSE:JPM)

Sector:Financial
Industry:Money Center Banks
Market Cap:$124.90B
Beta:1.33

JPMorgan Chase & Co. has a Dividend Yield of 3.66%, a Payout Ratio of 23.90%, a Price/Earnings Ratio of 7.29, a Price/Book Value Ratio of 0.66, and a Analysts' Rating of 2.00. The short interest was 0.75% as of 06/08/2012. JPMorgan Chase & Co., a financial holding company, provides various financial services worldwide. Its Investment Bank segment offers various investment banking products and services, including advising on corporate strategy and structure, capital-raising in equity and debt markets, risk management, market-making in cash securities and derivative instruments, prime brokerage, and research services for corporations, financial institutions, governments, and institutional investors. The company's Commercial Banking segment provides lending, treasury, investment banking, and asset management services to corporations, municipalities, financial institutions, and not-for-profit entities.

4) Banco Santander, S.A. (STD)

Sector:Financial
Industry:Foreign Money Center Banks
Market Cap:$50.14B
Beta:1.73

Banco Santander, S.A. has a Dividend Yield of 13.71%, a Payout Ratio of 36.44%, a Price/Earnings Ratio of 4.47, a Price/Book Value Ratio of 0.47, and a Analysts' Rating of 1.50. The short interest was 0.30% as of 06/08/2012. Banco Santander, S.A. provides a range of banking and financial products. It offers various deposit products, such as demand and time deposits, and savings and current accounts; repurchase agreements; mortgages and personal loans; consumer finance; and telephone banking services, and online and mobile telephone banking services. The company also engages in corporate banking, treasury, and investment banking activities; designs and manages mutual and pension funds, investment companies, and discretionary portfolios; manages real estate investment products; and offers trade finance and wholesale banking services.

5) Barclays PLC (NYSE:BCS)

Sector:Financial
Industry:Foreign Money Center Banks
Market Cap:$36.73B
Beta:2.64

Barclays PLC has a Dividend Yield of 3.16%, a Payout Ratio of 24.21%, a Price/Earnings Ratio of 8.06, a Price/Book Value Ratio of 0.43, and a Analysts' Rating of 1.30. The short interest was 0.24% as of 06/08/2012. Barclays PLC provides various financial products and services worldwide. It offers retail and commercial banking, credit cards, investment banking, wealth management, and investment management services. The company's personal banking products include bank accounts, a range of credit cards through Barclaycard, savings accounts, loans, insurance, online banking, and mortgages through Woolwich.

*Company profiles were sourced from Finviz. Financial data was sourced from Finviz and Yahoo Finance.

Source: 5 Discounted Large Caps With Sustainable Dividends