Despite the broad market being up over 15% over the past six months, there are still many concerns in investors' minds. A potential bubble in emerging markets, recent protests abroad, and the possibility of a slowdown in the U.S. market all combine to make investors jittery.

The silver lining though is that many quality stocks are still trading on the cheap and have plenty of cash to dish out to shareholders, and this could mean great opportunities for savvy investors.

I ran a screen for industrial companies paying dividends above 2%, that are trading for P/Es below 17, and that have CAPS ratings of at least four stars as rated by our 170,000-strong investing community. I've sorted them in order of their dividend yield. Below are seven stocks that fit that exact criteria:

Stock

Dividend 
Yield

Paying Dividends 
Since

P/E 
Ratio

CAPS Rating 
(out of 5)

Lockheed Martin (NYSE: LMT)

3.7%

1983

10.2

****
Raytheon (NYSE: RTN)

3.0%

1982

10.3

****
Ampco-Pittsburg (NYSE: AP)

2.8%

1984

9.0

*****
AZZ (NYSE: AZZ)

2.5%

1990

15.2

*****
Chase Corp. (AMEX : CCF)

2.2%

1995

10.8

*****
General Dynamics (NYSE: GD)

2.2%

1979

11.1

****
L-3 Communications (NYSE: LLL)

2.0%

2004

9.5

****

CAPS data, Feb. 7.

You'll probably notice that many of these are defense companies, which are trading at extremely low levels right now, in both a current and historical context. My fellow Fool Anand Chokkavelu thinks a basket of defense stocks is a great way to play the market right now. However, with all dividend-paying companies, you've got to make sure do your own due diligence to make sure these dividends won't get cut or suspended right after you decide to make an investment.

Nonetheless, these stocks are paying nice dividends and are trading really reasonably, and if income is what you're looking for, this could be a great place to start.

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