6 S&P 500 Dividend Stocks Undervalued By The Graham Number

Tickers in this article: COP LLL NOC SWY TAP WPO

4. Safeway Inc. ( SWY): Operates as a food and drug retailer in North America. Market cap at $4.61B, most recent closing price at $19.25.  Diluted TTM earnings per share at 2.11, and a MRQ book value per share value at 11.6, implies a Graham Number fair value = sqrt(22.5*2.11*11.6) = $23.47. Based on the stock's price at $19.43, this implies a potential upside of 20.78% from current levels.  Dividend yield at 3.6%, and payout ratio at 31%.

5. Molson Coors Brewing Company ( TAP): Distributes beer brands. Market cap at $8.19B, most recent closing price at $45.18.  Diluted TTM earnings per share at 3.07, and a MRQ book value per share value at 45.39, implies a Graham Number fair value = sqrt(22.5*3.07*45.39) = $55.99. Based on the stock's price at $45.12, this implies a potential upside of 24.1% from current levels.  Dividend yield at 2.8%, and payout ratio at 36%.

6. The Washington Post Company ( WPO): Operates as a diversified education and media company in the United States and internationally. Market cap at $2.85B, most recent closing price at $385.68.  Diluted TTM earnings per share at 31.68, and a MRQ book value per share value at 358.19, implies a Graham Number fair value = sqrt(22.5*31.68*358.19) = $505.29. Based on the stock's price at $387.1, this implies a potential upside of 30.53% from current levels.  Dividend yield at 2.5%, and payout ratio at 36%.

 

Written by Kapitall's Sabina Bhatia. BVPS and EPS data sourced from Yahoo! Finance, all other data sourced from Finviz.  Did you find this list useful as a starting point for your analysis? Do you have a list requests? Leave your comments below and we’ll do our best to deliver.