By Numer de Guia, CFA Suppose you could uncover a list of top-ranked stocks that have attractive valuations. And suppose those stocks also paid dividends at an above-average yield. Sound good? Then your list might just look like the contents of this week's screen.

Think of it as a three-pronged approach. First, we wanted to look for stocks with solid fundamentals. We started with the list of companies ranked 5 STARS (buy) by analysts from Standard & Poor's Equity Research. Stocks with that designation are expected to post a

total return that beats the benchmark S&P 500 index by a wide margin, with shares rising in price on an absolute basis.

Next, we wanted to make the case for these stocks based on valuation. We sifted for those issues with lower p-e ratios than the 20.9 average for the S&P 500.

Finally, we looked for something to interest investors who like dividend-paying stocks. We sorted for those issues with a higher indicated

dividend yield than the 1.69% average for the S&P 500. Our search turned up these 29 names:

Company

Ticker

Allstate

ALL

Alltel

AT

Anheuser-Busch

BUD

Annaly Mortage

NLY

Bank Of America

BAC

BCE Inc.

BCE

Burlington Northern Santa Fe

BNI

ChevronTexaco

CVX

China Mobile Hong Kong

CHL

China Petroleum & Chem

SNP

Citigroup

C

Constellation Energy

CEG

Deere & Co.

DE

Dow Chemical

DOW

Endesa

ELE

Eni

E

Exxon Mobil

XOM

Fifth Third Bancorp

FITB

Fortune Brands

FO

Hartford Finaical Services

HIG

Huaneng Power

HNP

Indymac Bancorp

NDE

Johnson & Johnson

JNJ

MBNA Corp.

KRB

National City

NCC

Southtrust

SOTR

U S Bancorp

USB

UST Inc.

UST

Wachovia

WB

De Guia is an analyst for Standard & Poor's Portfolio Services