With poor interest rates making it harder than ever to milk income from investment portfolios, millions of investors have turned to dividend stocks to get the payouts they want. Just like any other asset in high demand, buying pressure on dividend stocks has pushed up prices on most dividend-paying stocks precipitously. But if you're willing to look a little harder, you can still find some bargains out there -- although perhaps not in the places you'd first look for them. To scout out remaining bargains among dividend stocks, I decided to look for stocks that met two simple tests: a dividend yield above 3% and a price-to-book ratio below one.

Choosing a relatively high yield as one criterion was an obvious choice, as it met my desire to find stocks worthy of income-hungry investors. But picking price-to-book as a measure of value wasn't as clear-cut a decision. Most investors look first at earnings. But with much of the world undergoing systemic stresses that potentially distort earnings, looking at an alternative valuation measure like book value can reveal some stocks that earnings-focused investors would have dismissed without a second glance.

Source: Motley Fool

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