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I believe the following six stocks have cheap valuations and should see strong price appreciation in the next few years. They all pay dividends of 4% as well.

Novartis AG, (NYSE:NVS) through its subsidiaries, engages in the research, development, manufacture, and marketing of healthcare products worldwide.

The stock currently yields 4.14%. It has a forward P/E of 9.86. It is one of the largest drug companies in the world. They have a strong drug pipeline and continue to grow it. The company has a strong presence in China and has been growing that through M&A activity.

BP (NYSE:BP) provides fuel for transportation, energy for heat and light, retail services, and petrochemicals products.

The stock currently yield 4.3%. It has a forward P/E of 5.73. The company is still in a bind after last years deepwater rig explosion. I believe the market is significantly discounting the stock due to any potential litigation cost that could arise. I believe that the selling is overdone. I believe BP will eventually increase the dividend once the cloud of uncertainty clears up.

Credit Suisse Group AG, (NYSE:CS) together with its subsidiaries, operates as a financial services company. The company operates in three segments: Private banking, investment banking, and asset management.

Credit Suisse pays a dividend once a year. The dividend payment tends to vary significantly. The stock trades at a forward P/E of 5.81. Credit Suisse has been dragged down by the financial sector. The company is still very profitable and should continue to do well with the global recovery.

Vodafone Group (NASDAQ:VOD) provides mobile communications services in Europe, the Middle East, Africa, the Asia Pacific, and the United States.

The stock currently yields a hefty 7.2%. It trades at a forward P/E of 8.42. Vodafone has strong international exposure especially in countries like India. As more and more Indian consumers purchase cell phones and plans, Vodafone seems to be in a nice position to increase earnings.

Transocean (NYSE:RIG) provides offshore contract drilling services for oil and gas wells worldwide. It offers deepwater and harsh environment drilling, oil and gas drilling management, and drilling engineering and drilling project management services. The company also offers well and logistics services.

Similar to BP, Transocean has taken a hit as well due to the uncertainty of litigation from the deepwater well incident. The stock currently yields 5.5%. The forward P/E is 9.48. Transocean's services will continue to be in demand as the world markets recover and demand for oil increases.

Hudson City Bancorp (NASDAQ:HCBK) operates as the bank holding company for Hudson City Savings Bank that provides a range of retail banking services. It offers a range of deposit accounts, including passbook and statement savings accounts, interest-bearing transaction accounts, checking accounts, money market accounts, and time deposits, as well as IRA accounts and qualified retirement plans.

The company is the smallest of all the ones mentioned with a market cap of $3 billion. The stock currently yields 5.2%. It has a forward P/E of 7.57. Delinquent mortgages and NPLs have fallen substantially. This means the company will see higher profit and much more stable revenue from proper lending practices. The company has plenty of liquidity should do well long-term.

Source: 6 Stocks With Cheap Valuations And Strong Cash Flow