Investors are often looking for stocks that appear to be cheap not only in terms of their price tag but in regards to valuation as well.

Even better, is when these affordable stocks offer generous dividends. That said, here are three top-rated Zacks stocks that fit this scenario.   

KT Corporation - KT

Zacks Rank #1 (Strong Buy)

As one of the largest telecom companies in South Korea, KT Corporation's KT stock has risen over +20% in the last year and is near its 52-week high of $18 a share.

Providing mobile, fixed-line, and Voice over Internet Protocol (VoIP) services, KT Corporation’s stock still trades at just 6.5X forward earnings. KT Corporation’s EPS is expected to dip to $0.73 as it rounds out fiscal 2024 but is projected to rebound and soar over 270% in FY25 to $2.71 per share.   

Posting EPS of $1.55 in FY23, KT Corporation’s 3.37% annual dividend yield has kept investors engaged with the company scheduled to report its Q4 results on Thursday, February 27.

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Patria Investments Limited - PAX

Zacks Rank #2 (Buy)

Patria Investments Limited PAX is another American Depository Receipt (ADR) that may be worth a spot in the portfolio with a very appealing 5.01% annual dividend. Headquartered in the Cayman Islands, Patria operates as a private markets investment firm with its exposure principally in Latin America. Exposure to emerging or developing markets can be very lucrative with Patria offering asset management services that focus on private equity funds, infrastructure development, co-investment funds, constructivist equity funds, and real estate and credit funds.

Trading around $11, and near its 52-week lows, PAX is starting to look like a buy-the-dip target at 8.4X forward earnings. To that point, Patria is expected to post steady EPS growth with annual earnings projected to rise 14% this year and forecasted to increase another 3% in FY26 to $1.47 a share. Furthermore, Patria recently crushed its Q4 EPS expectations by 57% earlier in the month with earnings at $0.58 a share compared to estimates of $0.37.

Patria typically aims to distribute its dividend quarterly, announcing its latest payout will be on March 17 to shareholders on record by February 25. Plus, Patria has increased its dividend seven times in the last five years and its 48% payout ratio suggests room for more hikes in the future.

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Nu Skin Enterprises - NUS

Zacks Rank #1 (Strong Buy)

Rounding out the list is Nu Skin Enterprises NUS, which distributes a wide range of premium cosmetics, beauty, personal care, and wellness products. Based in Utah, Nu Skin Enterprises has operations in over 50 markets worldwide with its offerings also including nutritional and weight management products.

Trading under $10, it's very tempting to buy NUS at a 7.2X forward earnings multiple with 25% EPS growth in the forecast for FY25. It's also noteworthy that Nu Skin blasted its fourth-quarter earnings expectations by 73% a few weeks ago with Q4 EPS at $0.38 compared to estimates of $0.22.

Starting to stand out among the consumer staples sector, Nu Skin Enterprises stock has a 3.14% annual dividend, while many of its Zacks Cosmetics Industry peers don’t offer a payout including e.l.f. Beauty ELF.

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Bottom Line

These top-rated stocks could outperform the broader market in the near future as in addition to their buy ratings they have an overall “A” VGM Zacks Style Scores grade for the combination of Value, Growth, and Momentum. However, amid recent market volatility, a pullback could provide an even more appealing opportunity, especially considering their affordability and juicy dividends.

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This article originally published on Zacks Investment Research (zacks.com).

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