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Do you consider yourself a value investor? If so, we ran a screen looking for potentially undervalued dividend stocks you may be interested in.

We began by screening for dividend stocks: those paying dividend yields above 2% and sustainable payout ratios below 50%. We then screened for those that have outperformed the market over the last quarter, with quarterly performance above 10%.

Finally, we screened that universe for those that 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.

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

Tool provided by Kapitall.

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

List sorted by potential upside implied by the Graham Number.

1. Great Southern Bancorp Inc. (GSBC): Operates as the bank holding company for Great Southern Bank that offers various banking products and services in Missouri, Iowa, Kansas, Nebraska, and Arkansas. Market cap at $390.69M, most recent closing price at $29.63. Dividend yield at 2.49%, payout ratio at 21.60%. Performance over the last quarter at 26.21%. Diluted TTM earnings per share at 3.34, and a MRQ book value per share value at 21.83, implies a Graham Number fair value = sqrt(22.5*3.34*21.83) = $40.50. Based on the stock's price at $29.39, this implies a potential upside of 37.81% from current levels.

2. Peoples Bancorp Inc. (PEBO): Operates as a holding company for Peoples Bank, National Association that provides financial products and services. Market cap at $222.68M, most recent closing price at $21.39. Dividend yield at 2.11%, payout ratio at 23.40%. Performance over the last quarter at 10.55%. Diluted TTM earnings per share at 1.79, and a MRQ book value per share value at 20.39, implies a Graham Number fair value = sqrt(22.5*1.79*20.39) = $28.66. Based on the stock's price at $21.88, this implies a potential upside of 30.97% from current levels.

3. Hecla Mining Co. (HL): Engages in the discovery, acquisition, development, production, and marketing of silver, gold, lead, and zinc. Market cap at $1.26B, most recent closing price at $4.54. Dividend yield at 2.05%, payout ratio at 7.68%. Performance over the last quarter at 10.00%. Diluted TTM earnings per share at 0.4, and a MRQ book value per share value at 4.03, implies a Graham Number fair value = sqrt(22.5*0.4*4.03) = $6.02. Based on the stock's price at $4.66, this implies a potential upside of 29.24% from current levels.

4. C&F Financial Corp. (CFFI): Operates as the holding company for Citizens and Farmers Bank that provides various banking and related financial services to individuals and businesses. Market cap at $125.99M, most recent closing price at $39.90. Dividend yield at 2.65%, payout ratio at 25.25%. Performance over the last quarter at 23.54%. Diluted TTM earnings per share at 4.38, and a MRQ book value per share value at 28.08, implies a Graham Number fair value = sqrt(22.5*4.38*28.08) = $52.60. Based on the stock's price at $40.71, this implies a potential upside of 29.22% from current levels.

5. Sierra Bancorp (BSRR): Operates as the bank holding company for Bank of the Sierra that offers retail and commercial banking services in the central and southern sections of the San Joaquin Valley in California. Market cap at $149.46M, most recent closing price at $10.74. Dividend yield at 2.26%, payout ratio at 39.70%. Performance over the last quarter at 17.39%. Diluted TTM earnings per share at 0.61, and a MRQ book value per share value at 12.23, implies a Graham Number fair value = sqrt(22.5*0.61*12.23) = $12.96. Based on the stock's price at $10.73, this implies a potential upside of 20.75% from current levels.

6. Enterprise Bancorp Inc. (EBTC): Operates as the holding company for Enterprise Bank and Trust Company that provides various banking products and services primarily in Merrimack Valley and north central regions of Massachusetts, and southern New Hampshire. Market cap at $156.06M, most recent closing price at $16.52. Dividend yield at 2.70%, payout ratio at 34.58%. Performance over the last quarter at 11.65%. Diluted TTM earnings per share at 1.24, and a MRQ book value per share value at 13.88, implies a Graham Number fair value = sqrt(22.5*1.24*13.88) = $19.68. Based on the stock's price at $16.49, this implies a potential upside of 19.34% from current levels.

7. Alliance Financial Corporation (ALNC): Operates as the bank holding company for Alliance Bank, N. Market cap at $163M, most recent closing price at $34.76. Dividend yield at 3.64%, payout ratio at 49.64%. Performance over the last quarter at 15.87%. Diluted TTM earnings per share at 2.53, and a MRQ book value per share value at 31.24, implies a Graham Number fair value = sqrt(22.5*2.53*31.24) = $42.17. Based on the stock's price at $35.84, this implies a potential upside of 17.66% from current levels.

8. SLM Corporation (SLM): Provides education finance in the United States. Market cap at $7.58B, most recent closing price at $15.98. Dividend yield at 3.22%, payout ratio at 26.96%. Performance over the last quarter at 10.45%. Diluted TTM earnings per share at 1.68, and a MRQ book value per share value at 9.29, implies a Graham Number fair value = sqrt(22.5*1.68*9.29) = $18.74. Based on the stock's price at $16.11, this implies a potential upside of 16.32% from current levels.

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

Source: 8 Outperforming Dividend Stocks Undervalued By The Graham Number