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5 Undervalued Dividend Stocks By Graham and Buffett

Defensive Investors are defined as investors who are not able or willing to do substantial research into individual investments, and therefore need to select only the companies that present the least amount of risk.

When we look for undervalued companies, we often use metrics from Warren Buffett or his teacher Benjamin Graham. Both were great investors and their work was inspirational for millions of small pocket investors like me or you.

Below are five stock picks that met the criteria from the old investment gurus.

Here are the results....

Seagate Technology -- Yield: 4.31%

Seagate Technology (NASDAQ:STX) employs 52,100 people, generates revenue of $13,724.00 million and has a net income of $1,570.00 million. The current market capitalization stands at $15.80 billion.

Seagate Technology’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,679.00 million. The EBITDA margin is 19.52% (the operating margin is 12.94% and the net profit margin 11.44%).

Financials: The total debt represents 41.30% of Seagate Technology assets and the total debt in relation to the equity amounts to 138.42%. Due to the financial situation, a return on equity of 49.63% was realized by Seagate Technology.

Twelve trailing months earnings per share reached a value of $5.75. Last fiscal year, Seagate Technology paid $1.67 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.54, the P/S ratio is 1.16 and the P/B ratio is finally 5.77. The dividend yield amounts to 4.31%.

Stock Charts:


Long-Term Stock Price Chart of Seagate Technology (STX)
Long-Term Stock Price Chart of Seagate Technology (STX)
Long-Term Dividend Payment History of Seagate Technology (STX)
Long-Term Dividend Payment History of Seagate Technology (STX)
Long-Term Dividend Yield History of Seagate Technology (STX)
Long-Term Dividend Yield History of Seagate Technology (STX)


Ford Motor Company -- Yield: 3.90%

Ford Motor Company (NYSE:F) employs 187,000 people, generates revenue of $144,077.00 million and has a net income of $3,186.00 million. The current market capitalization stands at $60.96 billion.

Ford Motor Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12,765.00 million. The EBITDA margin is 8.86% (the operating margin is 2.30% and the net profit margin 2.21%).

Financials: The total debt represents 57.15% of Ford Motor Company assets and the total debt in relation to the equity amounts to 480.43%. Due to the financial situation, a return on equity of 12.52% was realized by Ford Motor Company.

Twelve trailing months earnings per share reached a value of $0.78. Last fiscal year, Ford Motor Company paid $0.50 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.20, the P/S ratio is 0.42 and the P/B ratio is finally 2.49. The dividend yield amounts to 3.90%.

Stock Charts:


Long-Term Stock Price Chart of Ford Motor Company (F)
Long-Term Stock Price Chart of Ford Motor Company (F)
Long-Term Dividend Payment History of Ford Motor Company (F)
Long-Term Dividend Payment History of Ford Motor Company (F)
Long-Term Dividend Yield History of Ford Motor Company (F)
Long-Term Dividend Yield History of Ford Motor Company (F)


KLA-Tencor -- Yield: 3.50%

KLA-Tencor (NASDAQ:KLAC) employs 6,060 people, generates revenue of $2,929.41 million and has a net income of $582.76 million. The current market capitalization stands at $9.04 billion.

KLA-Tencor’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $862.44 million. The EBITDA margin is 29.44% (the operating margin is 26.36% and the net profit margin 19.89%).

Financials: The total debt represents 13.50% of KLA-Tencor assets and the total debt in relation to the equity amounts to 20.38%. Due to the financial situation, a return on equity of 16.30% was realized by KLA-Tencor.

Twelve trailing months earnings per share reached a value of $2.12. Last fiscal year, KLA-Tencor paid $1.80 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 26.29, the P/S ratio is 3.12 and the P/B ratio is finally 2.49. The dividend yield amounts to 3.50%.

Stock Charts:


Long-Term Stock Price Chart of KLA-Tencor (KLAC)
Long-Term Stock Price Chart of KLA-Tencor (KLAC)
Long-Term Dividend Payment History of KLA-Tencor (KLAC)
Long-Term Dividend Payment History of KLA-Tencor (KLAC)
Long-Term Dividend Yield History of KLA-Tencor (KLAC)
Long-Term Dividend Yield History of KLA-Tencor (KLAC)


International Paper -- Yield: 3.32%

International Paper (NYSE:IP) employs 58,000 people, generates revenue of $23,617.00 million and has a net income of $749.00 million. The current market capitalization stands at $20.24 billion.

International Paper’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,874.00 million. The EBITDA margin is 16.40% (the operating margin is 6.41% and the net profit margin 3.17%).

Financials: The total debt represents 32.68% of International Paper assets and the total debt in relation to the equity amounts to 183.25%. Due to the financial situation, a return on equity of 8.59% was realized by International Paper.

Twelve trailing months earnings per share reached a value of $2.27. Last fiscal year, International Paper paid $1.45 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.08, the P/S ratio is 0.86 and the P/B ratio is finally 3.96. The dividend yield amounts to 3.32%.

Stock Charts:


Long-Term Stock Price Chart of International Paper (IP)
Long-Term Stock Price Chart of International Paper (IP)
Long-Term Dividend Payment History of International Paper (IP)
Long-Term Dividend Payment History of International Paper (IP)
Long-Term Dividend Yield History of International Paper (IP)
Long-Term Dividend Yield History of International Paper (IP)


Pfizer -- Yield: 3.30%

Pfizer (NYSE:PFE) employs 78,300 people, generates revenue of $49,605.00 million and has a net income of $9,120.00 million. The current market capitalization stands at $206.77 billion.

Pfizer’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $20,198.00 million. The EBITDA margin is 40.72% (the operating margin is 25.66% and the net profit margin 18.39%).

Financials: The total debt represents 21.67% of Pfizer assets and the total debt in relation to the equity amounts to 51.45%. Due to the financial situation, a return on equity of 12.32% was realized by Pfizer.

Twelve trailing months earnings per share reached a value of $1.45. Last fiscal year, Pfizer paid $1.04 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.22, the P/S ratio is 4.21 and the P/B ratio is finally 2.99. The dividend yield amounts to 3.30%.

Stock Charts:


Long-Term Stock Price Chart of Pfizer (PFE)
Long-Term Stock Price Chart of Pfizer (PFE)
Long-Term Dividend Payment History of Pfizer (PFE)
Long-Term Dividend Payment History of Pfizer (PFE)
Long-Term Dividend Yield History of Pfizer (PFE)
Long-Term Dividend Yield History of Pfizer (PFE)