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Stocks trading with favorable valuations are always a good bet to outperform the market, as many value fund managers over the decades have shown us. Here were some I brought up recently that had some great dividends, along with other large-cap stocks here that are great values as well. However, looking at international stocks may show great value as well.

Telefonica (TEF) doesn't get any help being based in Spain, and being associated as one of the PIIGS (Portugal, Ireland, Italy, Greece and Spain) countries in need of a bailout. However, this telecommunications stock is trading at levels last seen during the mega-crisis of 2008, and there's some true value here when we see it trading at 1x price/sales, 6.5x price/earnings, and 11.4% dividend yield which is supported by approximately $10.5B in FCF this past year. I think this is a buy here as they've proven to have a stable revenue base and great management team.

France Telecom (FTE) may not be one of the PIIGS, but it still is indirectly affected as being a part of the European Union, and the market has punished this company mercilessly. Trading at .7x price/sales, 10.4x price/earnings and 12.1% dividend yield supported by close to $9B in FCF this past year, this telecommunications giant is trading right near its multi-year low and I believe a great buy.

Petroleo Brasileiro S.A. (NYSE:PBR) primarily engages in oil and natural gas exploration and production, refining, trade, and transportation businesses. This energy giant is trading at a comparatively cheap 6.8x price/earnings, .9x Price/Book, and 6x Enterprise value/EBITDA. While I'd like for the dividend yield to be higher, this energy name is trading right near lows and I have confidence in their management reinvesting the earnings wisely into energy exploration and discoveries.

Arcelor Mittal (MT) is the largest steel manufacturer in the world, and is based out of Luxembourg. It has significant insider ownership by the very well-respected Mittal family management team, and in my opinion is beautifully run. Moreover, the valuations are real compelling when trading at .3x price/sales, 12.4x price/earnings, .5x price/book, and a respectable 3.4% dividend yield. I think the steel maker sitting right near its multi-year low is a buy here.

Posco (PKX) is a large steel manufacturer based in South Korea. It's had Berkshire Hathaway as an investor in years past, and currently has Third avenue, Dimensional Fund Advisors, and Mohnish Pabrai among many other great value investors. The valuations look nice trading at .4x price/sales, 7x price/earnings, and .8x price/book; however it has a rather small 1.1% dividend yield. However, with such cheap valuations, I think it's a safe buy.

Potash (POT), based out of Canada, is a massive producer of its namesake, potash fertilizer. As world population and prosperity grows, people need to eat, and that's where this company benefits. This is not for the typical value investor, trading at just over 5x price/sales and price/book, and 14x price/earnings, but the company is showing strong revenue growth, achieving over 50% year-over-year and looking to have that continue as potash prices remain strong. I think the recent drop from $60 has provided a nice entry point.

Banco Santander of Spain (STD) is a financial behemoth with more than $46 billion in sales. With the ongoing financial worries of the European Union, this stock is getting clobbered, which is nice for the long-term value dividend investor. Trading at just over 1x price/sales, .5x price/book, 6.5x price/earnings, and with a very nice 11% dividend yield, I like the stock at these depressed levels.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in TEF, FTE, MT over the next 72 hours.

Source: International Stocks To Consider Adding To Your Portfolio