8 Stocks With Dividend Yields Above P/E

NEW YORK (TheStreet) -- The steep decline in the broad market since late April has been painful for buy-and-hold investors but it may have also fostered bargains for those brave enough to put new money to work.

The S&P 500 dipped down into bear market territory during Tuesday's session, plumbing an intraday low of 1075, a drop of 21.2% from its near-term closing high of 1364 on April 29. With the market's valuation down at financial crisis levels of March 2009 earlier this week, research firm Birinyi Associates went looking for stocks trading at levels that offer "an attractive risk reward ratio."

To that end, the firm ran a screen on the S&P 1500 to find stocks whose dividend yields were higher than their P/E ratios.

As of Monday's close, 8 stocks fit the criteria -- Lincoln Educational Services (LINC), USA Mobility (USMO), Prospect Capital (PSEC), Apollo Investment (AINV), RR Donnelly (RRD), United Online (UNTD), Deluxe Corp. (DLX), and Pitney Bowes (PBI).

Birinyi also screened for stocks with yields within 50% of their P/E ratios, and excluded financial names, coming back with 39 companies, including Dow Chemical (DOW), Eli Lilly (LLY), Merck (MRK), and Whirlpool Corp. (WHR).

"While not a fool proof method of isolating companies that are under valued we, however, believe both lists are an interesting starting point, especially when all but one of the stocks listed yield higher than the 30-year treasury bond at 2.8%," Birinyi said.

Here's a look at the 8 stocks that were sporting yields above their P/E ratios as of Monday's close.

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