The recent market correction certainly doesn't make investors feel great when viewing their portfolio's, but it does offer an opportunity nonetheless.

Contrarian investors should utilize times like this to differentiate between stocks that are dropping for fundamentally sound reasons -- and those stocks that are simply being dragged down because of general market concerns. Sure, there's plenty to worry about -- gigantic federal deficits, sovereign debt problems in Europe, an economic slowdown in China. But let's not forget that in the midst of all of this volatility lies the prospect to grab some great companies at dirt cheap prices.

In particular, I'm a huge fan of dividend stocks. Renowned Professor Jeremy Siegel has illustrated that from 1957 to 2003, when reinvesting dividends, the S&P's 100 highest-yielding stocks outperformed the market by an average of three percentage points. Over a long period of time, three percentage points can really add up. So if you can find dividend stocks trading cheaply, and can separate the good from the bad, you may found yourself a real winner.

I ran a screen for dividend stocks that have gotten crushed in the last month, in addition to companies that are trading at low P/E's. Below is a selection of those stocks that I like, additionally rated by our own 165,000-strong CAPS community.

Stock

Dividend Yield

1-Month % Change

Price-to-Earnings Ratio

CAPS Rating (out of 5)

France Telecom (NYSE: FTE)

9.69%

(8.3%)

11.6

*****

Hellenic Telecommunications (NYSE: OTE)

7.94%

(10.1%)

13.8

****

Barnes & Noble (NYSE: BKS)

7.54%

(36.2%)

11.6

*

Transocean (NYSE: RIG)

6.64%

(18.4%)

5.2

****

Chevron (NYSE: CVX)

4.21%

(8.1%)

10.4

****

ConocoPhillips (NYSE: COP)

4.01%

(5.34%)

12.1

*****

Books-A-Million

3.32%

(14.6%)

6.9

**

Some of these stocks are trading on the cheap for good reason -- book retailers like Barnes & Noble and Books-A-Million face difficult competition from Amazon.com (Nasdaq: AMZN), and certainly aren't projected to grow much over the next five years. Unlike Amazon's expected 25% per year in expected earnings growth.

Others, like France Telecom and Hellenic Telecommunications, are certainly feeling the brunt of the falling euro and sovereign debt worries that have now plagued almost all members of the EU.

However, Chevron and ConocoPhilips, as is the case with most oil companies, are being hit hard by the ramifications of the tragic BP spill in the Gulf. Contrary to Transocean, which actually might have some liability tied to the spill, these two companies may just be experiencing collateral damage to their share price.

Could this be a good time to hop on the oil bandwagon, especially when companies are trading reasonably and still paying great dividends?

Let us know in the comments section below!