NEW YORK ( TheStreet) - Every so often, MagicDiligence compiles a list of Magic Formula stocks sorted by their dividend yield, price-to-sales ratio, and price-to-book ratio for investors that like to use those metrics.

The result is a list of attractive value stocks for additional research. Here are the top 10 in each of the three metrics listed above:

Dividend Yield

Dividend yield is a favorite metric for income investors, providing both steady, predictable returns and downside protection. With Magic Formula Investing, you are also buying dividend stocks that are both cheap against earnings and represent a company that efficiently invests capital.

The Top 10 Magic Formula highest dividend yield stocks (forward yield) right now are: (1) 7.0% - EarthLink Inc ( ELNK); (2) 6.4% - Altria Group ( MO); (3) 6.1% - Reynolds American ( RAI); (4) 5.9% - United Online ( UNTD); (5) 5.6% - Value Line ( VALU); (6) 5.5% - Lorillard ( LO); (7) 4.7% - Garmin ( GRMN); (8) 4.6% - H&R Block ( HRB); (9) 4.5% - Deluxe Corp ( DLX); (10) 4.3% - Lockheed Martin ( LMT).

Price-to-Sales Ratio

Using the price-to-sales ratio was a tactic shown to be highly successful by such guru investors as Ken Fisher in Super Stocks and by James O'Shaughnessy in What Works on Wall Street.

The Top 10 Magic Formula stocks with lowest price-to-sales ratios are: (1) 0.11 - AmerisourceBergen ( ABC); (2) 0.15 - McKesson ( MCK); (3) 0.16 - Eastman Kodak ( EK); (4) 0.24 - Unisys ( UIS); (5) 0.26 - Providence Service ( PRSC); (6) 0.29 - Oshkosh ( OSK); (7) 0.35 - GameStop ( GME); (8) 0.36 - EMCOR Group ( EME); (9) 0.46 - Dell ( DELL); (10) 0.49 - Amedisys ( AMED).

Price-to-Book Ratio

Finally, the price-to-book ratio is often considered the "classic" test of value investing: Are you buying a company at or less than the net value of its assets? Price-to-book ratio was a favorite of the "father" of value investing, Ben Graham.

The top 10 Magic Formula stocks with lowest price-to-book ratio are: (1) 0.51 - Jiangbo Pharmaceuticals ( JGBO); (2) 0.92 - Amedisys ( AMED); (3) 1.03 - Time Warner ( TWX); (4) 1.17 - GameStop ( GME); (5) 1.21 - AOL ( AOL); (6) 1.25 - Comtech Telecommunications ( CMTL); (7) 1.26 - Argan ( AGX); (8) 1.27 - EarthLink ( ELNK); (9) 1.29 - Motorcar Parts of America ( MPAA); (10) 1.31 - United Online ( UNTD).
At the time of publication, Alexander owned GameStop. This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

If you liked this article you might like

Ready for More Mergers? Here Are 3 Telecom Targets

Ready for More Mergers? Here Are 3 Telecom Targets

3 Companies That Growth-Starved Telcos Like Frontier and Verizon Could Target

3 Companies That Growth-Starved Telcos Like Frontier and Verizon Could Target

Closing Bell: Gold Endures Worst Day in Weeks; S&P 500 Snaps Losing Streak

Closing Bell: Gold Endures Worst Day in Weeks; S&P 500 Snaps Losing Streak

Stocks Hold Big Gains as Polls Forecast a Clinton Win, Crude Climbs

Stocks Hold Big Gains as Polls Forecast a Clinton Win, Crude Climbs

Jim Cramer: EarthLink/Windstream Deal Boosts Cash for Both

Jim Cramer: EarthLink/Windstream Deal Boosts Cash for Both