The stock market as a whole has performed rather well recently, with the S&P 500 up by more than 7% over the past four months. As a result, many stocks are beginning to look expensive.

However, there are still some bargains to be found in today's stock market. Here are three dividend-paying stocks that look especially cheap right now, and why each one could be a smart addition to your portfolio as the summer comes to an end.

Letters hanging from clothesline, spelling out sale.

Image source: Getty Images.

Company (Symbol)

Recent Stock Price

P/E Ratio (2018 Est.)

Dividend Yield

Goldman Sachs (NYSE:GS)

$238.00

9.6

1.4%

AT&T (NYSE:T)

$33.42

9.4

6%

Tanger Factory Outlet Centers (NYSE:SKT)

$24.61

10.1

5.7%

Data source: TD Ameritrade. Stock prices and P/E ratios as of 8/21/18. For SKT, the P/FFO ratio is used to make the data REIT-appropriate.

This stock could be the best value in banking

Goldman Sachs is one of the cheapest stocks in banking, with a P/E of less than 10 and a price-to-book multiple of just 1.19. Just look at how this compares to some of the other big U.S. banks:

Bank

P/E Ratio (2018 Est.)

Price-to-Book Ratio

Price-to-Tangible Book Ratio

Goldman Sachs

9.6

1.19

1.26

JPMorgan Chase (NYSE: JPM)

12.7

1.68

2.20

Bank of America (NYSE: BAC)

12.2

1.29

1.81

Morgan Stanley (NYSE: MS)

9.9

1.21

1.38

Wells Fargo (NYSE: WFC)

13.7

1.59

2.12

Data source: TD Ameritrade. Metrics as of 8/21/18.

Despite its low valuation. Goldman has been performing quite well recently. The bank handily beat analysts' estimates on both the top and bottom lines, and it holds the No. 1 market share for M&A advisory and common stock IPOs. The bank's trading revenue has been a bit weaker than peers, but this is likely a temporary issue and not a real cause for concern.

As a long-term investment, I'm especially excited about Goldman's consumer banking potential. The overwhelming success of the bank's Marcus platform for personal loans and online savings products has resulted in a new and rapidly growing revenue stream for the bank. However, Goldman's consumer banking division could still be in the very early stages. The bank is expanding into the consumer credit card space in an aggressive manner, as it is about to become Apple's co-branding partner. And, a recent presentation by the bank's management indicates that there could be several other consumer banking expansions on the horizon.

A massive, stable dividend with growth potential

AT&T hasn't exactly been a great performer this year. Investor concerns about the company's debt levels, its merger with Time Warner, and the Justice Department's subsequent challenge of it have all weighed on the stock.

Because of the stock's 14% year-to-date plunge, AT&T now offers a 6% dividend yield and an excellent value for long-term investors.

Simply put, I think there's a lot more growth potential than the market seems to be giving AT&T credit for. For example, the recent merger with Time Warner and the DIRECTV acquisition of a few years ago give AT&T unmatched ability to offer bundled services to customers. And, the company should be one of the early leaders in 5G technology, which could be a tremendous growth driver over the next decade or so with the surge in connected devices in the U.S.

In fact, I recently added some more shares of AT&T to my own portfolio to take advantage of the stock's depressed valuation and great long-term return potential.

The right kind of retail stock to buy

Some retail stocks have gotten crushed in recent years -- I certainly wouldn't want to be a Sears (NASDAQ: SHLD) or JCPenney (NYSE: JCP) shareholder these days. However, not all retail is in the same boat. While some retail business models, such as large-scale department stores and full-price discretionary retail, are struggling to adapt in the modern retail environment, some are doing quite well.

Two types of retail that are doing a particularly good job despite the surge in e-commerce are discount-oriented retail and retail with an experiential component. Outlet shopping involves both, as outlets tend to offer excellent bargains that are unique and fun to hunt for.

Tanger Factory Outlet Centers is the only real estate investment trust, or REIT, that is solely focused on outlet retail. While sales are slightly down from their 2015 peak levels, Tanger's properties are doing quite well considering the e-commerce headwinds. Its properties are 96% occupied, and the company has done an excellent job of adding even more of an experiential component for shoppers with initiatives like food-truck festivals and family fun nights.

Tanger has recently taken a step back when it comes to growth as it focuses on positioning its properties to thrive in the new retail environment. Over the long run, however, the outlet industry has lots of room to grow, and with one of the most recognizable brand names in outlet retail and a strong balance sheet, Tanger should have a big advantage.

Matthew Frankel, CFP®, owns shares of Apple, AT&T, and Tanger Factory Outlet Centers. The Motley Fool owns shares of and recommends Apple. The Motley Fool has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool has a disclosure policy.