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|  | NOVEMBER 5, 2004
 STOCK SCREENS By Numer de Guia, CFA Value Stocks with Juicy Payouts S&P finds 18 undervalued names that offer promising price appreciation and above-average dividend yields Attractive valuations and above-market dividend yields. The combination sounds enticing: the chance to realize capital appreciation on a stock while getting paid to own it -- at a payout rate greater than the average of that for the S&P 500-stock index. That notion animates this week's screen. First, we set to work on the value part. But this time around, we wanted to go deeper than just price-earnings ratios. We wanted to find stocks that were valued below the market by three other yardsticks. So we mined our database for those issues currently trading below the S&P 500 based on the index': • Price-to- cash-flow ratio of 12.824 • Price-to- book value ratio of 2.967 • Price-to-sales ratio of 1.514 But of course, an undervalued stock will stay that way unless it has potential to close the gap through capital appreciation. So we then screened for issues ranked 4 STARS (accumulate) or 5 STARS (buy) by Standard & Poor's equity analysts. Stocks with those designations are expected to outperform the overall market over the next 6 to 12 months. Then we took care of the yield part. We sifted for stocks with a dividend yield higher than the S&P 500 average of 1.643%. When we finished our search, 18 names emerged:
 De Guia is an analyst for Standard & Poor's Portfolio Advisors All of the views expressed in this research report accurately reflect the research analyst's personal views regarding any and all of the subject securities or issuers. No part of analyst compensation was, is or will be, directly or indirectly related to the specific recommendations or views expressed in this research report. Standard & Poor's Regulatory Disclosure Any advice, analysis, or recommendations contained in articles labeled "Insight from Standard & Poor's" reflect the views of Standard & Poor's, which operates separately from and independently of BusinessWeek Online. It is possible that BWOL may from time to time publish information that is not consistent with advice, analysis, or recommendations that are published by Standard & Poor's. Standard & Poor's and BusinessWeek Online are each units of The McGraw-Hill Companies, Inc.
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