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Finding stocks trading with favorable valuations is always a good way to outperform the market, as many value fund managers over the decades have shown us. In these volatile times, it's also beneficial to find stocks with heavy institutional ownership, since they tend to provide strong price support as they have holding periods longer than seconds or minutes. Below is a group that not only has strong institutional ownership, but some very nice dividend yields as well for the aging demographics looking to have not only secure holdings, but nice income as well:

Diversified telecommunications giant Frontier Communications (FTR) has recently dropped sharply, bringing its yield to 13%. Moreover, FTR management sent out a press release on Oct. 3 reaffirming its intention to maintain the $0.75 annual dividend and pointed out that FCF guidance for the year is from $1.075 to $1.125B, which easily covers the approximately $746M current annual dividend. The company is trading at a relatively cheap 1x P/S, has a great management team committed to rewarding shareholders, and strong institutional ownership of 49.5% as of last quarter. I bought some more recently at $5.41 and will look to add to my position if FTR continues to show great value. Moreover, FTR had some bullish activity recently as I described here.

Business development and closed-end management company Apollo Investment (AINV) now sits at a yield of approximately 15.5%. On a valuation basis, the stock looks cheap trading at forward 7x P/E, 0.9x P/B, has a respectable return on assets of just over 5%, and strong institutional ownership of 56.5% as of last quarter. This is at a good entry price now.

Moving over to commodities, Steel giant and Luxembourg-based Arcelor Mittal (MT) looks great trading at a trailing 13x P/E, 8x forward P/E, .4x PEG and P/S, just over 4x EV/EBITDA, .5x P/B, and secure 3.5% dividend yield. Moreover, MT has significant insider ownership by the Mittal family, which aligns their interests with us shareholders.

Fellow mREIT Annaly Capital (NLY) now has a yield of approximately 15%. This stock has dropped, and now has some considerable value, trading at a trailing 12x P/E, forward 7x P/E, 1x P/B, with a return on equity of just under 9%, and decent institutional ownership of 40.4% as of last quarter. NLY is widely regarded as having the best management team in the mREIT space, and when I see it trading at these levels, I'll be looking to add to my position. Moreover, one can gain extra income by applying this strategy I discussed here recently.

Integrated communications giant CenturyLink (CTL) now has a sizable dividend yield of approximately 8%. The company now trades at a trailing 24x P/E, 13x forward P/E, 1x P/B, and has strong institutional ownership of 78.2% as of last quarter. Moreover, the company looks to have its their great dividend secured as it has a massive amount of depreciation substantially helping FCF. I think this is a buy now.

Prospect Capital (PSEC) is a mezzanine finance and private equity firm that specializes in late venture, middle market, mature, mezzanine, buyouts, recapitalizations, growth capital, development, and bridge transactions. PSEC is fantastic for consistent income as it pays the fantastic 13% dividend monthly and trades at just a trailing 7x P/E, forward 8x P/E, and .9x P/B. The company had almost 30% institutional ownership as of last quarter along with heavy insider buying lately, most notably Chairman and CEO John Barry buying 235,000 shares on Sept. 1, making it a quality buy.

Diversified telecommunications giant Windstream (WIN) has fallen recently, bringing its yield up to 8.5%. This company now trades at forward 14x P/E, 1.5x P/S, and the approximately $510M annual dividend payment looks secure as the company has annual FCF of approximately $680M, and has strong institutional ownership of 49.5% as of last quarter. This can be a great dividend stock to diversify with your other telecommunication holdings.

Disclosure: I am long FTR.

Source: 7 Stocks With Very Nice Dividend Yields