11 Undervalued, High-Yield, Dividend-Paying Financials
Published Apr 4, 2011 on Seeking Alpha

Below is a list of 11 financial stocks that are paying attractive dividends (between 4-7%). These stocks are also attractively priced, according to the Graham Number.Benjamin Graham, the man who developed this equation, was a former mentor of Warren Buffett and is the so-called “Godfather” of value investing.The Graham Number, or the maximum price an investor should pay for a stock, is derived using only two data points: current earnings per share and current book value per share. Click for expanded images:The Graham Number = Fair Value of a Stock = Square Root of (22.5) x (TTM Earnings per Share) x (MRQ Book Value per Share).The math of the Graham number is relatively straightforward. It is predicated on the belief that the price-to-earnings (P/EPS) ratio should be no more than 15, and the price-to-book value (P/BVPS) ratio should be no more than 1.5. Therefore we only... Read more