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The S&P 500 recently tested its 50-day moving average, but does that mean valuations for the index have normalized? Unfortunately, it hasn’t even begun to do so. Looking at the Shiller P/E ratio for the S&P 500, the market has only been more overvalued one other time and that was during the 2000 tech bubble. The market may only be in a quiet period before significant volatility returns. In this climate, identifying value companies that pay dividends may be a shelter from the storm that’s still brewing.

The Shiller P/E Ratio is a price-to-earnings ration for the S&P 500 that is based on average inflation-adjusted earnings for the previous 10 years. Another name for the ratio is the Cyclically Adjusted P/E Ratio (CAPE Ratio). The current Shiller P/E Ratio is at 31.40. This level is higher than at any point before the financial crisis and the 1929 crash but is lower than just before the tech bubble. Even march’s selloff did little to lower the ratio.

As you may have noticed last week, many of the highfliers over the past couple months were hit the hardest over the past week. Those companies that were underperforming typically sold off less. While it’s possible that the market may go right back to the highfliers, it may be a more likely scenario that they start to look at value and income.

The following six companies are trading below their intrinsic value, have relatively high dividend yields and are sound financially.

Value & Income Stock #1: Ambev SA ADR (NYSE: ABEV)

Ambev is a Consumer Staples beverage company that makes beer, soda drinks, non-alcoholic beverages, and food products. If you’ve ever kicked back with a Corona or a Budweiser on a weekend, then you’ve experienced a couple of their products.

The company has been reducing its debt over the past four years and is in a good cash position. The company has a relatively inconsistent dividend history but is considered to currently pay a 5.19% yield. The company is currently trading at a significant discount compared to it history.

Value & Income Stock #2: China Mobile Ltd (NYSE: CHL)

China Mobile is a mobile telecommunications company in Hong Jong and mainland China. The company has little debt and ample cash, but its margins are down from where they have been historically.

The company pays a forward dividend yield of 5.62% but similar to ABEV, they have not paid a consistent dividend rate over the past 6 years. The current dividend yield is near a 10 year high for the company and it is nearly 30% undervalued at its current price.

Value & Income Stock #3: Cisco Systems, Inc (NASDAQ: CSCO)

Cisco is a communications equipment company that sells internet protocol-based networking products and other communication products. The company has reduced its debt over the past three years and has a cash-to-debt ratio of 2.

They have a dividend yield of 3.59% and a 5-year dividend growth rate of 12.4%. The company began paying a dividend 10 years ago and has consistently raised it every year since. The company is modestly undervalued as it trades nearly 20% below its intrinsic value.

Value & Income Stock #4: Ennis, Inc (NYSE: EBF)

Ennis manufacturers business forms and other business products in the United States. The company has little debt and strong cash levels with a cash-to-debt ratio of 4.12. The company has completely reversed that picture over the past four years as cash levels have increased and debt levels decreased.

They currently pay a 5.11% dividend yield and has a 5-year dividend growth rate of 6%. The company has consistently paid a dividend for 30 years and briefly cut the annual dividend from $0.62 to $0.525 in 2013. The company is modestly undervalued as it trades a little over 20% below its intrinsic value.

Value & Income Stock #5: Janus Henderson Group PLC (NYSE: JHG)

Janus is in the Financial Services sector as an asset management company. The company has relatively little debt and has seen its cash levels increase significantly over the past five years. It has a current cash-to-debt ratio of 5.5.

The currently pay a 7.28% dividend yield and introduced the dividend in 2017. The current price is trading nearly 20% below its intrinsic value.

Value & Income Stock #6: Strategic Education Inc (NASDAQ: STRA)

Strategic Education provides a range of post-secondary education and non-degree programs through Strayer University, Capella University and other non-degree subsidiaries. The company has little debt with a debt-to-equity of 0.07 and a cash-to-debt ratio of 4.82.

They currently pay a dividend yield of 2.59% and reintroduced their dividend in 2017 after eliminating it in 2013. The company is currently trading nearly 35% below its intrinsic value.