Do you prefer stocks that pay dividends you can rely on? We ran a screen with this idea in mind. We began by screening the S&P 500 for dividend stocks: those paying dividend yields above 2% and sustainable payout ratios below 50%. Then 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 off of 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: 1. ConocoPhillips (COP), 2. L-3 Communications Holdings Inc. (LLL), 3. Northrop Grumman Corporation (NOC), 4. Safeway Inc. (SWY), 5. Molson Coors Brewing Company (TAP) and . The Washington Post Company (WPO).
Source: Kapitall Wire
Related Articles:
- Holding Bonds Could Push Your Portfolio Into The High Risk Category
- Love People, Use Dividend Stocks
- The 2012 Dividend Achievers
- Why Dividends Matter
- 6 Dividend Stocks For The New Year
Dividend Growth Stocks News
- Top ASX Dividend Stocks To Watch In May 2025 - Yahoo Finance - 5/15/2025
- 3 Top Dividend Stocks to Maximize Your Retirement Income - Nasdaq - 5/15/2025
- 3 Stocks Hiking Dividends Worth Buying - 24/7 Wall St. - 5/15/2025
- Rebecca Teltscher's Market Outlook: Canadian Dividend Stocks - BNN Bloomberg - 5/15/2025
- Isabella Bank And 2 Other Top Dividend Stocks To Consider - Yahoo Finance - 5/15/2025
- Air Products and Chemicals Inc. (APD) Dividend Stock Analysis - 5/9/2025
- Waste Management, Inc. (WM) Dividend Stock Analysis - 5/2/2025
- Wal-Mart Stores, Inc. (WMT) Dividend Stock Analysis - 4/25/2025
- Abbott Laboratories (ABT) Dividend Stock Analysis - 4/18/2025
- General Dynamics (GD) Dividend Stock Analysis - 4/11/2025
Undervalued Dividend Stocks Using The Graham Number
Posted by D4L | Tuesday, February 05, 2013 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.