Value stocks have been outperforming growth stocks since the beginning of 2022. While a potential growth stock recovery may be on the horizon, it's still prudent to have a portion of your portfolio dedicated to value stocks.

These stocks provide consistent and steady returns, often accompanied by dividends that can benefit any investor.

If you have $5,000 that you can invest without affecting your monthly bills, emergency fund, or short-term debt, here are three value stocks worth considering:

PepsiCo

PepsiCo is a global leader in the beverage and snack markets, with a diverse portfolio of popular brands sold in numerous countries worldwide. Beyond its well-known namesake brand, PepsiCo owns Frito-Lay, Doritos, Quaker, Gatorade, Lipton, Tostitos, and many other energy drinks, soft drinks, groceries, and snack brands.

The company's extensive market penetration and brand strength provide stability and resistance to demand shocks during recessions. While its North American beverage segment contributed only 30% of total revenue last year, PepsiCo's diversified offerings ensure a share of household budgets globally.

Additionally, its enormous scale and economic moat make it challenging for competitors to disrupt its position.

PepsiCo management forecasts 8% revenue growth in 2023, maintaining stable profit margins. With a dividend yield of 2.6%, a $5,000 investment today could yield approximately $130 in annual dividends. As a Dividend King, PepsiCo has a strong track record of delivering predictable cash flows, making it an attractive value stock.

KLA Corp.

KLA provides equipment and services to the semiconductor and electronics manufacturing industry. Its specialized measurement devices, defect detection systems, and analytics tools enable semiconductor producers to enhance chip design and manufacturing efficiency.

While semiconductor stocks are often subject to economic factors, KLA's position as an equipment supplier insulates it from cyclicality.

Demand for capital equipment remains relatively stable over time. With a wide economic moat created by its specialized product portfolio, KLA offers a reliable and steady investment in the semiconductor industry.

The company has consistently delivered revenue growth and a high return on invested capital over the past decade.

3M

3M is a diversified industrial giant offering a wide range of products for industrial, office, and household applications. Similar to PepsiCo, the diversity and maturity of its product portfolio limit its potential for high growth rates. However, this diversification also provides stability and resilience against downside risks

3M has faced legal challenges related to hearing problems caused by faulty earplugs produced by a subsidiary, as well as potential liability for the production of PFAS chemicals. While the outcome and potential costs of the litigation are uncertain, risk-averse investors may choose to approach the stock with caution.

However, the market's fears have led to 3M stock being undervalued. With a dividend yield of 6% and a forward P/E ratio below 12, the stock presents an opportunity for those willing to accept some risk.

If the worst-case scenario for the litigation is avoided, and damages are limited, 3M could experience a modest recovery when the economy rebounds. In the meantime, the stock offers an attractive yield for shareholders.

Conclusion

In conclusion, value stocks have shown resilience and stability, making them valuable additions to any investment portfolio. PepsiCo, KLA Corp., and 3M are well-established companies in their respective industries, offering potential for consistent returns and, in some cases, dividends.

Before making any investment decisions, it's essential to conduct thorough research and consider your individual financial goals and risk tolerance.