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I feel that in order to see substantial gains in the market, one must do substantial research in order to find stocks that are being sold at a true "value." A momentarily bad quarter and shifting market sentiment has pushed the market low, on some stocks more than on others.

When looking for stocks that are "undervalued," there are several facts one can dissect, and even speculation can be used. Whatever method used to find stocks that are considered undervalued, one popular method is PEG (Price/Earnings to Growth). I like to use this ratio because unlike the P/E, it takes into account growth. Below I have screened four stocks that I believe to be undervalued given their >1 PEG. Not only are they undervalued, but these stocks are offering dividend yields of 10% or greater and have a higher payout ratio than the average. Another reason I like dividend investing is because it provides a steady stream of income to live off of, whether it is monthly or quarterly. Below are 4 stocks that pay dividends and are excellent companies to consider for a steady stream of income and steady growth:

Windstream Corporation (NASDAQ:WIN) is a communications and technology solutions provider, specializing in complex data, high-speed Internet access, and voice and transport services to customers in 29 states. The current market price is $9.76, with a one-year analyst price target of $11.9. This represents a 21.93% upside potential. WIN also offers a dividend yield of 10.2%, which is higher than its five-year average of 8.7%, and has a payout ratio of 256%.

Windstream's days sales in inventory is substantially shorter than the Integrated Telecom Svcs Industry average. Also compared to its peers, WIN has significantly lower revenue, but quarterly revenue Growth (yoy) is higher at 0.51%: AT&T, Inc (NYSE:T) has 0.02%, Sprint Nextel Corp (NYSE:S) has 0.05%, and Verizon Communications, Inc. (NYSE:VZ) has quarterly revenue growth of 0.05%. EPS of 0.38 on the other hand, is smaller than the industry average of 0.43.

The competitive local exchange carrier [CLEC], fiber network, and data center acquisitions are likely to continue to provide additional expansion opportunities for Windstream, thereby further diversifying the business away from declining sources of revenue. WIN also provides data center products to its small business and government customers; this will likely drive strong returns going forward. The company continues to acquire smaller rural carriers to expand its customer base. The acquisitions will also stimulate the company's growth going forward, making it a great buy opportunity at the current price and 5-star S&P rating.

Cellcom Israel Ltd. (NYSE:CEL) is a provider of cellular communications services in Israel. Cellcom offers a range of cellular services through its cellular networks. These services include basic and advanced cellular telephone services, text and multimedia messaging services and advanced cellular content and data services. As of December 31, 2010, the Company also offers international roaming services in 179 countries. The current market price is $6.94, with a one-year analyst price target of $12. This represents an uncanny 72.9% upside potential.

Not only is the one-year target estimate 72.9%, but the dividend yield is 24.73% with a 121% payout ratio. The dividend is paid quarterly and amounts to $0.34. Not only is the dividend yield excellent, but the PEG ratio is 0.64 (five year expected), which shows the company is undervalued at current levels.

Sales, EPS, cash from operating activities, gross profit, ROE, and ROA have been on the rise for the past five years which is a good indication of both consistent and future growth.

The five-year EPS growth rate for CEL is 10.32% beating out the industry average of 1.79% and the sector average of 8.17%. Also compared to its direct competition, CEL has an EPS of 1.77, Motorola Solutions (NYSE:MSI) is at 2.45 and Partner Communications Company (NASDAQ:PTNR) is 0.55. Overall CEL has performed exceptionally well, and this is reflected through its pattern of growth and fueled by its dividend. This is one undervalued stock to truly consider for both growth and dividends, especially given the current price.

Capital Product Partners LP. (NASDAQ:CPLP) is an international tanker company. The Company is engaged the seaborne transportation services of crude oil and refined petroleum products, edible oils and soft chemicals, by chartering its vessels under medium to long-term time and bareboat charters. The current market price is $7.82 with a one-year analyst price target of $9.6. This represents a 22.76% upside potential. This upside however, does not include its quarterly dividend payment of $0.23, yielding an additional 11.88%. The five-year dividend yield average is 13.90%, with an above average payout ratio, which shows consistency and stability.

Compared to its peers CPLP's one-year EPS growth rate of 234.25 % is substantially higher than the industry average of -30.21% and sector average of 6.82%. CPLP's direct competition has substantially lower net income compared to Capital Products' $84.62M. Also CPLP has a PEG of 0.77 which solidifies its undervalued status.

For fiscal year 2012, analysts estimate that CPLP will earn $0.22, and for 2013, analysts estimate that CPLP's earnings per share will grow by 86% to $0.41. The fundamental outlook on the oil and gas storage and transportation sub-industry is bullish. This stock is at a good price and has continued to increase throughout the year. The ten and twenty-one-day moving averages represent strong upward momentum. . Also, Moving Average Convergence/Divergence [MACD] indicates a Bullish Trend. Overall this is a good undervalued pick for substantial dividend gains.

Banco Santander, S.A. (NYSE:SAN) is a financial group operating principally in Spain, the United Kingdom, Portugal, other European countries, Brazil and other Latin American countries and the United States, offering a range of financial products. It operates in four segments: Continental Europe, United Kingdom, Latin America and Sovereign. The current market price is $6.07 with a one-year analyst price target of $7.94. This represents a 30.81% upside potential. The 30.81% upside potential does not include its hefty dividend of $0.15 that is paid quarterly and amounts to 12.19% yield. The dividend is above its five-year average of 5.4%, but the stock price is much lower than its five-year average and the payout ratio is 80%.

Compared to its peers Banco Santander's five-year EPS growth rate is much higher at 15.3%, where the industry average for regional banks is -2.18%. The financial sector as a whole also performs lower with five year EPS growth rate of -1.42%. SAN's direct competition Banco de Chile (NYSE:BCH) and Bank of Nova Scotia (NYSE:BNS) both have lower net income. SAN has a PEG of 0.11, where BCH has one of 1.32 and BNS is at 1.33. It seems like SAN outshines its peers industry and carries a larger dividend yield, not to mention its price is substantially lower.

SAN has an upward slope regarding its ten, twenty-one and fifty-day moving averages, which signifies a bullish trend. Also, Moving Average Convergence/Divergence [MACD] indicates a Bullish Trend. For fiscal year 2012, analysts estimate that SAN will earn $0.78. For fiscal year 2013, analysts estimate that SAN's earnings per share will grow by 27% to $0.99. With an upward momentum, this excellent dividend yield will not last long. I believe Banco Santander is undervalued at current prices and should see a substantial rise in price this year.

Source: 4 Undervalued Stocks Paying 10%+ Dividends