9 Outperforming Dividend Stocks Undervalued By The Graham Number

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 on 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... Read more