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Benjamin Graham is widely considered to be the “founder of value investing”.

In fact, many of the best value investors over time, such as Warren Buffett, used Graham’s teachings to invest in value stocks.

Graham popularized the term intrinsic value, which refers to a stock’s underlying fair value. In this way, investors can determine whether a stock is undervalued, fairly valued, or overvalued.

One of the core principles of Graham’s investment philosophy is the Graham Number.

Investors can apply the Graham Number to find undervalued dividend growth stocks, such as the Dividend Kings.

The Dividend Kings are the best-of-the-best in dividend longevity.

What is a Dividend King? A stock with 50 or more consecutive years of dividend increases.

We’ve compiled a list that includes every Dividend King.

The Dividend Kings list includes several mega-cap stocks that have enormous businesses, such as Walmart Inc. (WMT) and Coca-Cola (KO).

The following list represents the 10 Dividend Kings in the Sure Analysis Research Database with the lowest Graham Number.

Graham Number Overview

The Graham Number is fairly straightforward: investors can simply multiple the price-to-book ratio (P/B) by the price-to-earnings ratio (P/E).

Investors want to focus on stocks with a Graham Number below 22.5, and the lower, the better.

To compile the screen, we took the P/E ratios in the Sure Analysis Research Database, in combination with P/B ratios taken from Ycharts.

We then ranked the list of Dividend Kings by their corresponding Graham Number. The 10 most undervalued Dividend Kings, according to the Graham Number, are listed below.

Top Graham Number Dividend King: Stanley Black & Decker (SWK)

• Graham Number: 22.3

Stanley Black & Decker is a world leader in power tools, hand tools, and related items. The company holds the top global position in tools and storage sales.

Stanley Black & Decker is second in the world in the areas of commercial electronic security and engineered fastening. The company is composed of three segments: tools & outdoor, and industrial.

Source: Investor Presentation

On February 5th, 2025, Stanley Black & Decker announced fourth quarter and full-year results. For the quarter, revenue of $3.75 billion was unchanged from the prior year, but came in $120 million above expectations.

Adjusted earnings-per-share of $1.49 compared favorably to $0.92 in the prior year and was $0.22 ahead of estimates. For the year, revenue declined 3% to $15.4 billion while adjusted earnings-per-share of $4.36 compared to $1.45 in 2023.

Organic growth was flat for the year, but up 3% for the quarter. Organic sales for Tools & Outdoor, the largest segment within the company, was higher by 3% for the quarter.

Click here to download our most recent Sure Analysis report on SWK (preview of page 1 of 3 shown below):

Top Graham Number Dividend King: H.B. Fuller Companies (FUL)

• Graham Number: 21.9

H.B. Fuller is a leading global manufacturer of adhesives, sealants, and other specialty chemical products.

It has customers across more than 30 market segments in more than 140 countries. The category of industrial adhesives is the core product offering.

In mid-January, H.B. Fuller reported (1/15/25) financial results for the fourth quarter of fiscal 2024. Revenue grew 2% and organic revenue was essentially flat year-over-year, as price reductions offset volume growth.

Highlights for the full year can be seen in the image below:

Source: Investor Presentation

It was the third quarter of revenue growth after five consecutive quarters of declining sales amid de-stocking actions of customers and lackluster industrial demand.

However, gross margin shrank from 31.3% to 29.6% and earnings-per-share fell -30%, from $1.32 to $0.92, mostly due to high raw material costs, and missed the analysts’ consensus by $0.01.

Due to slowing demand in some emerging markets, H.B. Fuller provided modest guidance for fiscal 2025. It expects to grow organic revenue by 0%-2% and post earnings-per-share of $3.90-$4.20.

Click here to download our most recent Sure Analysis report on FUL (preview of page 1 of 3 shown below):

Top Graham Number Dividend King: ABM Industries (ABM)

• Graham Number: 20.8

ABM Industries is a leading provider of facility solutions, which includes janitorial, electrical & lighting, energy solutions, facilities engineering, HVAC & mechanical, landscape & turf, and parking.

The company employs about 124,000 people in more than 350 offices throughout the United States and various international locations, primarily in Canada.

Source: Investor Presentation

ABM Industries reported its fourth quarter earnings results on December 18. Revenues totaled $2.2 billion during the quarter, which was up 4% year-over-year. EBITDA declined by 11% despite higher revenue generation.

Earnings-per-share of $0.90 during the fourth quarter beat the analyst consensus by $0.03. EPS declined by 11% on an adjusted basis, year-over-year.

Earnings-per-share are expected in a range of $3.60 to $3.80 on an adjusted basis. At the guidance midpoint of $3.70 per share, that represents an increase of around 4% relative to 2024.

Click here to download our most recent Sure Analysis report on ABM (preview of page 1 of 3 shown below):

Top Graham Number Dividend King: Stepan Co. (SCL)

• Graham Number: 18.7

Stepan manufactures basic and intermediate chemicals, including surfactants, specialty products, germicidal and fabric softening quaternaries, phthalic anhydride, polyurethane polyols and special ingredients for the food, supplement, and pharmaceutical markets.

It is organized into three distinct business lines: surfactants, polymers, and specialty products. These businesses serve a wide variety of end markets, meaning that Stepan is not beholden to just a handful of industries.

Source: Investor presentation

The surfactants business is Stepan’s largest by revenue, accounting for ~68% of total sales in the most recent quarter. A surfactant is an organic compound that contains both water-soluble and water-insoluble components.

Stepan posted fourth quarter and full-year earnings on February 19th, 2025, and results were mixed once again. Revenue was down 1.2% year-on-year to $526 million, but did beat estimates by almost $5 million. Adjusted earnings-per-share came to 12 cents, which missed estimates by 21 cents.

Global sales volume was off 1% year-over-year as double-digit growth in surfactants was offset and then some by demand weakness in polymers. Surfactants were up 3% year-over-year in Q4 to $379 million. Polymer net sales fell 12% to $130 million.

The company managed to generate about $13 million in pre-tax cost savings during the quarter, and about $48 million for the full year.

Click here to download our most recent Sure Analysis report on SCL (preview of page 1 of 3 shown below):

Top Graham Number Dividend King: Black Hills Corp. (BKH)

• Graham Number: 18.2

Black Hills Corporation is an electric utility that provides electricity and natural gas to customers in Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming.

The company has 1.35 million utility customers in eight states. Its natural gas assets include 49,200 miles of natural gas lines. Separately, it has ~9,200 miles of electric lines and 1.4 gigawatts of electric generation capacity.

Source: Investor Presentation

Black Hills Corporation reported its fourth quarter earnings results in February. The company generated revenues of $597 million during the quarter, which was up 1% year-over-year.

Earnings-per-share of $1.37 during the fourth quarter was above the consensus analyst estimate. Earnings-per-share were up by close to 20% versus the previous year’s quarter. Q4 and Q1 are seasonally stronger quarters due to higher natural gas demand for heating, which was again showcased by the above-average profitability during the fourth quarter.

Black Hills Corporation forecasts earnings-per-share of $4.00 to $4.20 for the current fiscal year.

Click here to download our most recent Sure Analysis report on BKH (preview of page 1 of 3 shown below):

Top Graham Number Dividend King: Northwest Natural Holding (NWN)

• Graham Number: 17.7

Northwest was founded over 160 years ago as a natural gas utility in Portland, Oregon.

It has grown from a very small, local utility that provided gas service to a handful of customers to a very successful regional utility with interests that now include water and wastewater, which were purchased in recent acquisitions.

Source: Investor Presentation

Northwest provides gas service to 2.5 million customers in ~140 communities in Oregon and Washington, serving more than 795,000 connections. It also owns and operates ~35 billion cubic feet of underground gas storage capacity.

On February 28, 2025, Northwest Natural Holding Company (NWN) reported its financial results for the fourth quarter of 2024. The company achieved an adjusted net income of $90.6 million for the full year, or $2.33 per share, slightly down from $93.9 million, or $2.59 per share, in 2023.

This decrease was primarily due to regulatory lag affecting the first ten months of 2024 until new Oregon gas utility rates became effective on November 1. The utility margin increased by $26.3 million, mainly due to these new rates.

Click here to download our most recent Sure Analysis report on NWN (preview of page 1 of 3 shown below):

Top Graham Number Dividend King: United Bankshares (UBSI)

• Graham Number: 12.9

United Bankshares was formed in 1982 and since that time, has acquired more than 30 separate banking institutions.

This focus on acquisitions, in addition to organic growth, has allowed United to expand in the Mid-Atlantic with about $30 billion in total assets, and annual revenue of about $1 billion.

United posted fourth quarter and full-year earnings on January 24th, 2025, and results were better than expected on the bottom line, but missed revenue estimates.

Earnings came to 69 cents per share, which was 33 cents ahead of estimates. Revenue was off slightly to $262 million, missing estimates by $12 million.

Provisions for credit losses came to $6.7 million, a slight improvement year-over-year. Net interest income came to $232 million, up 1% from Q3. The boost came primarily from a lower average rate paid on deposits.

This was partially offset by a lower yield on average net loans and leases held for sale. Average earning assets rose $556 million, or 2%, from Q3. Most of this was due to an increase in short term investments of $420 million.

The yield on average net loans and leases was down 18 basis points from Q3. Net interest margin for the fourth quarter was down three basis points from Q3 at 3.49%.

Click here to download our most recent Sure Analysis report on UBSI (preview of page 1 of 3 shown below):

Top Graham Number Dividend King: Universal Corp. (UVV)

• Graham Number: 11.1

Universal Corporation is a market leader in supplying leaf tobacco and other plant-based inputs to consumer product manufacturers.

The Tobacco Operations segment buys and sells tobacco used to make cigarettes, cigars, pipe tobacco, and smokeless products.

Universal buys tobacco from its suppliers, processes it, and sells it to large tobacco companies in the US and internationally.

Source: Investor Presentation

The Ingredient Operations deal mainly with vegetables and fruits but is significantly smaller than the tobacco operations.

Universal Corporation reported its third quarter earnings results in February. The company generated revenues of $937 million during the quarter, which was more than the revenues that Universal Corporation generated during the previous period.

Revenues were positively impacted by product mix changes, while larger and better-yielding crops also had a positive impact on the company’s top-line. Universal Corporation’s revenues also rose on a year-over-year basis, showing a 14% increase.

Click here to download our most recent Sure Analysis report on Universal (preview of page 1 of 3 shown below):

Top Graham Number Dividend King: Farmers & Merchants Bancorp (FMCB)

• Graham Number: 10.0

Farmers & Merchants Bancorp is a locally owned and operated community bank with 32 locations in California. Due to its small market cap and its low liquidity, it passes under the radar of most investors.

F&M Bank has paid uninterrupted dividends for 88 consecutive years and has raised its dividend for 59 consecutive years.

In late January, F&M Bank reported (1/23/25) financial results for the fourth quarter of fiscal 2024. The bank grew its earnings-per-share 9% over the prior year’s quarter, from $28.55 to a new all-time high of $31.11. Loans and deposits grew 1% each.

Net interest income dipped -3% due to a contraction of net interest margin from 4.30% to 4.05% amid higher deposit costs. Management remains optimistic for the foreseeable future, as the bank enjoys one of the widest net interest margins in its sector.

We reiterate that F&M Bank is one of the most resilient banks during downturns, such as the pandemic, a potential recession or the financial turmoil caused by the collapse of Silicon Valley Bank, Credit Suisse and First Republic.

Click here to download our most recent Sure Analysis report on FMCB (preview of page 1 of 3 shown below):

Top Graham Number Dividend King: Archer Daniels Midland (ADM)

• Graham Number: 9.8

Archer-Daniels-Midland is the largest publicly traded farmland product company in the United States. Its businesses include processing cereal grains, oilseeds, and agricultural storage and transportation.

Archer-Daniels-Midland reported its third-quarter results for Fiscal Year (FY) 2024 on November 18th, 2024.

The company reported adjusted net earnings of $530 million and adjusted EPS of $1.09, both down from the prior year due to a $461 million non-cash charge related to its Wilmar equity investment.

Consolidated cash flows year-to-date reached $2.34 billion, reflecting strong operations despite market challenges.

Click here to download our most recent Sure Analysis report on ADM (preview of page 1 of 3 shown below):

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