Here at Zacks, we don’t generally classify stocks as “cheap” or “expensive”, and rather than looking at the stock’s face value, we have a system that puts an emphasis on earnings estimate revisions to find stocks that will hopefully be winners for investors.

Nevertheless, the appeal of low-cost stocks is apparent. Lower per-share prices mean smaller investors can maintain higher positions, and that’s simply more interesting to a lot of folks. With that said, it also makes sense that these same investors would be interested in stocks with high dividend yields, as these payouts allow for the purchasing of additional shares over time.

Thus, the combination of low costs and high dividend yields seems like a perfect pair to run through the Zacks Stock Screener. Today we’ve highlighted three of these stocks that are also sporting strong Zacks Ranks, and you can check them out below:

1.       Alliance Holdings (AHGP - Free Report) - Zacks Rank #1 (Strong Buy)

Dividend Yield: 8.03%

Alliance Holdings produces and markets coal primarily to utilities and industrial users in the United States. It produces a range of steam coal with varying sulfur and heat contents. On top of its high dividend yield, the stock holds an “A” grade for Momentum and is up nearly 46.5% year-to-date. Furthermore, Alliance has an “A” grade for Value, which has been boosted by its strong P/E ratio 10.37.

2.       KNOT Offshore Partners (KNOP - Free Report) - Zacks Rank #1 (Strong Buy)

Dividend Yield: 9.35%

KNOT Offshore Partners is engaged in the operation of shuttle tankers designed to transport crude oil and from offshore oil fields to onshore terminals and refineries. Shares of KNOP have gained over 63% year-to-date, and the company boasts an impressive net margin of 34.56% compared to an industry that averages 0.13%. Also, our consensus estimates indicate that KNOT should see sales growth of over 11% this year.

3.       Fibria Celulose (FBR - Free Report) - Zacks Rank #2 (Buy)

Dividend Yield: 12.04%

Fibria Celulose is a Brazil-based paper product company which produces bleached eucalyptus pulp exclusively from renewable plantations. Besides its dividend yield and Zacks Rank #2 (Buy) listing, this stock sports “A” grades for both Value and Momentum. Despite its struggles earlier this year, FBR is up nearly 30% over the last 12 weeks, and its P/E ratio of 5.02 and Earnings Yield of 20.45% highlight its worth to a value-minded investor.

Bottom Line

Sometimes extremely high dividend yields are a cause for concern, as many investors view these yields as a tactic to drum up attention to a company that won’t be able to maintain the distribution in the long-term. However, these stocks are not just sporting high yields; they are also showing strong fundamentals and Zacks Ranks. Add in their low price tags, and these three stocks could be solid picks for smaller investors looking to reinvest dividends over time.