22 High Quality, Undervalued Dividend Stocks Worth Considering
Published May 15, 2011 on Seeking Alpha

With the market shrugging off the recent commodity collapse and making its way back to new highs, I thought it might be worth looking for high quality dividend stocks overlooked by the market. Starting with the Russell 1000, I screened for stocks with better than 3% dividend yield, EV / EBIT less than 10x, and Return on Capital greater than 10%. Only 22 stocks made the cut: Ticker Company Div. Yield EV / EBIT ROIC P / E YTD Return MO ALTRIA GROUP INC 6.17% 9.44 31.67% 13.95 11.58% RAI REYNOLDS AMERICA 5.80% 8.68 24.11% 9.61 17.89% EXC EXELON CORP 5.07% 8.12 14.64% 9.86 2.34% DO DIAMOND OFFSHORE 5.03% 8.35 22.78% 10.89 7.17% LO LORILLARD INC 4.78% 8.23 254.42% 15.57 35.09% BMY BRISTOL-MYERS SQB 4.47% 7.61 29.58% 13.04 11.36% MRK MERCK & CO 4.18% 8.09 12.22% 10.44 2.82% PEG PUB SERV ENTERP 4.07% 9.23 14.28% 10.56 5.66% PFE PFIZER INC... Read more