Out Of 70 Graham Value All-Stars, These 16 'Safer' Stocks Stand Out For April

2025-04-24 09:03:37 ET

Summary

• The Value Score identifies large-cap stocks offering high intrinsic value relative to their price, helping investors find undervalued companies with strong assets and profits.
• The Ben Graham Formula highlights ultra-stable stocks with strong earnings, dividends, and low valuations, ideal for long-term, defensive investing.
• 24 out of 69 April Graham All-Star-Value (GASV) Dividend stocks offer “safer” dividends with yields lower than their free cash flow yields. And 16 show IDEAL annual dividends (from $1K invested).
• Sixteen “safer” Ideal GASV emerged as buys for April. Top-ten tickers were: FSK; HSBC; ING; ET; MPLX; NWSI; MO; BBAR; DHT; IVZ.

Foreword

About Large Cap Value

A Value ranking for large cap stocks from YCharts puts together complementary strategies found during their stock research. The value ranking looks at the price of a stock relative to a number of measurements that determine intrinsic firm value. Only the largest 10% of companies based on market cap are shown in this portfolio.

What it is: The Value Score is a composite score. It tells you how much you are getting in terms of profits, cash flows, assets, sales, etc. for the stock price that you pay. It is a relative measurement, so it says nothing about the overall level of the market. Rather, it answers the question: "Given the current market level, which stocks give you the most current value for your dollar of investment?" Tens are the most value, and 1s are the least.

How to use it: Use it to find companies that are selling at a low price relative to their assets and profits.

Limitations of the Value Score: Watch out for companies with a lot of uncertainty or bad prospects for the future (e.g., Pharma companies with expiring patents, industries on the decline, etc.).

About the Ben Graham Formula

The Ben Graham Formula strategy contains ultra-stable stocks that will infrequently lose money if held over a long period of time. It was developed based on a screen in Graham's book, "The Intelligent Investor." For those who have the book, it is the "Defensive Investor" screen. It selects stocks that are large in terms of sales and total assets, have a strong track record of earnings and dividend payments, have a reasonable current ratio and level of long term debt, and have a low valuation given by PE Ratios and Price to Book Value ratios. - YCharts

While over half of this collection of Graham All-Star-Value (GASV) stocks are too pricey, or reveal somewhat skinny or no forward-looking dividends, sixteen of the twenty-four 'safer' lowest-priced Dogs of the GASV are ready to buy. April finds FS KKR Capital ( FSK ), HSBC Holdings ( HSBC ), ING Group NV ( ING ), EnergyTransfer ( ET ), MPLX LP ( MPLX ), Northwest Bancshares ( NWBI ), Altria Group ( MO ), Banco BBVA Argentina SA ( BBAR ), DHT Holdings ( DHT ), Invesco Ltd ( IVZ ), Columbia Banking ( COLB ), Bank of Nova Scotia ( BNS ), Ennis ( EBF ), Luxfer Holdings ( LXFR ), Suncor Energy ( SU ), Barclays ( BCS ), on the buy-list....

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