The stock market remains volatile. With inflation elevated, the Federal Reserve continuing to hike rates and geopolitical tensions running hot, there is plenty for investors to worry about. One way to sidestep these concerns is by owning great value stocks.

There are multiple avenues to success in the markets. One strategy is to buy deep value stocks. If investors buy companies with a large enough margin of safety, it tends to lead to satisfactory returns regardless of what the broader economy does.

The three value stocks below are all selling for less than 10 times earnings and pay considerable dividends to shareholders. This should give investors confidence that they can buy shares at an attractive price while also receiving significant income.

Exxon Mobil (XOM)

Exxon Mobil (NYSE:XOM) is one of the dominant North American energy companies. It has had tremendous success over the decades with its investments in oil, gas and related fields such as chemicals and refining.

The energy industry suffered a massive bust from 2014 through 2021 as oil and natural gas prices collapsed. Exxon kept investing during this time — unlike many of its peers — putting billions of dollars to work in new fields such as offshore Guyana.

This has paid off, allowing Exxon to boost production just as oil prices came roaring back. With inflation on the rise, commodity producers such as Exxon Mobil offer far more value.

Investors might look at the big rebound in XOM stock over the past two years and think the opportunity has already passed. However, Exxon shares are still trading for just 9 times trailing earnings and have a 3.2% dividend yield. And with the recent OPEC production cuts, it seems the price of oil should snap out of its recent slump, paving the way for another strong year in 2023.

Verizon Communications (VZ)

Verizon Communications (NYSE:VZ) is one of the three large American mobile telecom providers. Traditionally, this has been a great industry for investors, offering huge cash flows and large dividends.

Unfortunately, rival AT&T (NYSE:T) has fallen on hard times. It slashed its dividend last year following a series of botched M&A transactions. And things went from bad to worse recently as AT&T had another dour earnings report and shares plunged.

Verizon shares have also been punished amid the industry panic, with the stock falling around 6% in the past two and a half weeks. However, the two companies’ situations are very different. Verizon’s profits are only down slightly and cash flows are strong. Analysts expect Verizon to return to profit growth in 2024.

In the meantime, shares trade for around 8 times forward earnings and offer a 7% dividend yield. That’s a bargain.

Citigroup (C)

For years, Citigroup (NYSE:C) has been a laughingstock among bank names. It lost nearly all of its value in the 2008 financial crisis as it took heavy losses and ended up diluting shareholders dramatically to survive. Since that point, Citigroup has retrenched, exiting many foreign markets while suffering several embarrassing incidents such as its mistaken $500 million bond payment related to Revlon (OTCMKTS:REVRQ).

However, Citigroup appears to be turning over a new leaf. The firm’s results have improved in recent years. And investors are starting to reward it. C stock is up more than 8% year to date, outperforming the other big banks. This is a notable and encouraging development.

Even with the stock’s outperformance recently, shares remain dirt-cheap. C stock is trading for around 8 times forward earnings and has a 4.2% dividend yield. Shares sell for just over half of book value, offering substantial upside if and when their valuation picks up compared to other banks.

As if that weren’t enough, famed investor Warren Buffett invested heavily in Citigroup last year. Other investors may wish to follow his lead.

On the date of publication, Ian Bezek held a long position in XOM and VZ stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.