Undervalued Stocks Paying A Solid Dividend

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I just ran a screen for value stocks that pay dividends.  The criteria are:

  • Stocks that trade on US exchanges.
  • Exclude “over the counter” stocks (Exclude stocks that trade on the Pink Sheets).
  • Current long-term growth of EPS rate > 0. (The rate of growth in earnings per share is positive).
  • Current year dividend per share / stock price >= 0.01 (The dividend yield is at least 1%).
  • Current P/E ratio excluding extraordinary items is < 20.  Extraordinary items are those items on the financial statements which are “infrequent and unusual in nature.”  Stripping these items out from the financial statements makes sure that financial ratio are not skewed by results that have nothing to do with the company’s normal operations.
  • Current Enterprise Value / EBITDA < 6.
  • Price to book ratio < 1.5.
  • Market capitalization > $1 billion.

Following is information on the screen results.

  • First American Financial Corp (NYSE:FAF): This company, which is in the Financial sector, had revenues of $3,906,612,000 for the most recent fiscal year, which represents a change of -3.46% year over year. The stock recently traded at $15.35, its trailing P/E ratio (excluding extraordinary items) is 16.60, its market capitalization is $1,614,423,000, and the stock has returned 2.74% year-to-date. About the company:  First American Financial Corporation offers title insurance, specialty insurance, and financial services.
  • The Washington Post Company (NYSE:WPO): This company, which is in the Services sector, had revenues of $4,723,573,000 for the most recent fiscal year, which represents a change of 7.68% year over year. The stock recently traded at $405.73, its trailing P/E ratio (excluding extraordinary items) is 14.54, its market capitalization is $3,217,893,000, and the stock has returned -7.68% year-to-date. About the company:  The Washington Post Company is a diversified media and education company. The Company publishes newspapers and magazines, owns and operates a television station and cable service, manages an online publishing unit, as well as a complete educational system with teaching aides, testing preparations, and full online graduate programs. Competitors to Watch: Career Education Corp. (NASDAQ:CECO), The Princeton Review, Inc (NASDAQ:REVU), Apollo Group, Inc. (NASDAQ:APOL), DeVry Inc. (NYSE:DV), Gannett Co., Inc. (NYSE:GCI), Grand Canyon Education Inc (NASDAQ:LOPE), Corinthian Colleges, Inc. (NASDAQ:COCO), National American Univ. Hldgs., Inc. (NASDAQ:NAUH), Strayer Education, Inc. (NASDAQ:STRA), and Bridgepoint Education, Inc. (NYSE:BPI)
  • Murphy Oil Corporation (NYSE:MUR): This company, which is in the Energy sector, had revenues of $23,345,070,000 for the most recent fiscal year, which represents a change of 22.79% year over year. The stock recently traded at $62.81, its trailing P/E ratio (excluding extraordinary items) is 13.26, its market capitalization is $12,149,110,000, and the stock has returned -15.75% year-to-date. About the company:  Murphy Oil Corporation is a worldwide oil and gas exploration and production company with refining and marketing operations in the United States and the United Kingdom. The Company also has exploration and production activities in countries that include United States, Canada, the United Kingdom, Malaysia, and Ecuador. Murphy Oil has retail operations as well in the United States. Competitors to Watch: Marathon Oil Corporation (NYSE:MRO), Western Refining, Inc. (NYSE:WNR), Sunoco, Inc. (NYSE:SUN), Chevron Corporation (NYSE:CVX), Exxon Mobil Corporation (NYSE:XOM), BP plc (NYSE:BP), ConocoPhillips (NYSE:COP), Valero Energy Corporation (NYSE:VLO), Tesoro Corporation (NYSE:TSO), and Hess Corp. (NYSE:HES).
  • Kyocera Corporation (NYSE:KYO): This company, which is in the Technology sector, had revenues of $15,723,692,220 for the most recent fiscal year, which represents a change of 17.98% year over year. The stock recently traded at $100.61, its trailing P/E ratio (excluding extraordinary items) is 12.15, its market capitalization is $19,464,154,197, and the stock has returned -1.33% year-to-date. About the company:  KYOCERA CORPORATION manufacturers electronic equipment and components. The Company’s products include telecommunication equipment, information equipment, optical equipment, ceramic products, semiconductor parts, chips, hybrid integrated circuits, thermal printheads, image sensors, liquid crystal displays, and connectors. Kyocera operates worldwide.
  • NTT DoCoMo, Inc. (NYSE:DCM): This company, which is in the Services sector, had revenues of $52,427,123,813 for the most recent fiscal year, which represents a change of -1.40% year over year. The stock recently traded at $17.46, its trailing P/E ratio (excluding extraordinary items) is 11.95, its market capitalization is $76,384,872,091, and the stock has returned 0.46% year-to-date. About the company:  NTT DOCOMO, INC. provides various types of telecommunication services including cellular phones, satellite mobile communication, and wireless LAN Network. The Company also sells cellular phones, and other equipment.
  • HCC Insurance Holdings, Inc. (NYSE:HCC): This company, which is in the Financial sector, had revenues of $2,302,254,000 for the most recent fiscal year, which represents a change of -.70% year over year. The stock recently traded at $30.89, its trailing P/E ratio (excluding extraordinary items) is 11.12, its market capitalization is $3,512,193,000, and the stock has returned 6.74% year-to-date. About the company:  HCC Insurance Holdings, Inc. underwrites property and casualty insurance. The Company provides property insurance in the United States and marine, aviation, offshore energy, accident, and health insurance worldwide. HCC’s customers include ocean marine fleets, multinational energy businesses, and international aviation operations.
  • MKS Instruments, Inc. (NASDAQ:MKSI): This company, which is in the Technology sector, had revenues of $853,114,000 for the most recent fiscal year, which represents a change of 117.25% year over year. The stock recently traded at $25.08, its trailing P/E ratio (excluding extraordinary items) is 8.51, its market capitalization is $1,310,792,000, and the stock has returned 2.37% year-to-date. About the company:  MKS Instruments, Inc. develops, manufactures, and supplies instruments and components used to control and analyze gases in semiconductor manufacturing and similar industrial manufacturing processes. The Company’s products are used to manufacture flat panel displays, magnetic and optical storage devices and media, solar cells, fiber optic cables, and diamond thin films.
  • SK Telecom Co., Ltd. (NYSE:SKM): This company, which is in the Services sector, had revenues of $13,473,706,288 for the most recent fiscal year, which represents a change of 4.00% year over year. The stock recently traded at $17.80, its trailing P/E ratio (excluding extraordinary items) is 8.28, its market capitalization is $11,959,153,509, and the stock has returned -4.29% year-to-date. About the company:  SK Telecom Co., Ltd., an affiliate of SK Group, offers telecommunications services and products in South Korea. The Company provides mobile phone services under the brand names Speed 011. In addition, SK Telecom and its subsidiaries offer other wireless services including data, paging, and Internet services.
  • American Financial Group (NYSE:AFG): This company, which is in the Financial sector, had revenues of $4,497,000,000 for the most recent fiscal year, which represents a change of 4.10% year over year. The stock recently traded at $34.59, its trailing P/E ratio (excluding extraordinary items) is 8.26, its market capitalization is $3,578,327,000, and the stock has returned 7.12% year-to-date. About the company:  American Financial Group, Inc. provides multi-line property and casualty insurance. The Company also sells tax-deferred annuities and certain life and supplemental health insurance products. American Financial operates in the United States.
  • Domtar Corp. (NYSE:UFS): This company, which is in the Basic Materials sector, had revenues of $5,850,000,000 for the most recent fiscal year, which represents a change of 7.04% year over year. The stock recently traded at $93.27, its trailing P/E ratio (excluding extraordinary items) is 5.87, its market capitalization is $3,947,979,000, and the stock has returned 22.85% year-to-date. About the company:  Domtar Corporation produces uncoated freesheet paper. The Company manufactures business papers, commercial printing and publication papers, and technical and specialty papers. Domtar manages forestland in Canada and the United States, and produces lumber and other wood products.

(Note: Financial data is sourced from screener.co.  All data are assumed to be accurate.)

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