Dividends4Life: Undervalued S&P 500 Dividend Stocks

Dividend Growth Stocks News

Undervalued S&P 500 Dividend Stocks

Posted by D4L | Tuesday, April 17, 2012 | | 0 comments »

Do you look for value when considering different stocks? If so, here are some value ideas to keep in mind. To illustrate, we ran a screen by starting with stocks of the S&P 500 paying dividend yields above 1% and sustainable payout ratios below 50%. We then screened these names for those that appear undervalued by two measures: levered free cash flow/enterprise value, and the Graham Number.

Levered free cash flow is the free cash flow after deducting interest payments on outstanding debt. Enterprise value is the sum of the firm's value from all ownership sources: market cap, outstanding debt, and preferred shares. The higher the ratio, the more undervalued the company appears. The Graham Number was created by the "godfather of value investing" Benjamin Graham, and it represents a stock's maximum fair value. It is based off of a stock's EPS and book value per share (BVPS).

Source: Investopedia

Related Articles:
- 10 Stocks That Have Paid Dividends Since The 1800s
- 7 Exceptional Dividend Growth Stocks With Quality Financials
- Are You Patient Enough To Be Wealthy? These 12 Dividend Stocks Will Help You Wait
- 10 Dividend Stocks For Healthy and Wealthy Retirement
- 15 Dividend Stocks With A 15% Yield In 15 Years



Post a Comment

Note: Only a member of this blog may post a comment.