Bloomberg columnist John Dorfman posts stock picks at the beginning of each year. His 2005 picks returned 13 percent (including dividends), compared with a 6.6 percent gain in the S&P 500. Dorfman has now posted his 10 Favorite Value Stocks For 2006, which includes United Online (UNTD) — a rare bird in its combination of internet exposure and high yield:

Want an Internet stock with a high dividend yield? It sounds improbable, yet there is such a creature — United Online Inc. (UNTD) of Woodland Hills, California. Investors dislike it because much of its business is old-fashioned dial-up service. Yet revenues are growing, and the 5.6 percent yield is juicy.

Here’s the revenue growth at UNTD that Dorfman speaks of:

● 3Q05: $132.8m
● 2Q05: $131.5m
● 1Q05: $130.5m
● 4Q04: $119.6m

UNTD 1-yr chart: