Experts' picks

Where do you find solid companies paying good dividend yields? We asked five stock market experts to each share three of their favorite picks. These are stocks they recommend to clients and may have purchased for themselves or their clients' accounts. Three of our experts are money managers, one a brokerage analyst covering real estate investment trusts and one a stock newsletter editor.

Timothy McIntosh, chief investment officer, Strategic Investment Partners, St. Petersburg:

Schering-Plough Corp. (SGP), pharmaceutical manufacturer. Share price: $16.64. Annual dividend: 68 cents. Dividend yield: 4.09 percent. "The company has a new CEO, Fred Hassan, and a potential blockbuster drug in Zetia."

Barclay's PLC (BCS), financial services. Share price: $29.71. Annual dividend: $1.28 past 12 months, but amount varies. Dividend yield: 4.31 percent. "Barclays is the premier bank in the United Kingdom that is expanding internationally."

Raytheon Co. (RTN), defense contractor. Share price: $30.86. Annual dividend: 80 cents. Dividend yield: 2.59 percent. "Raytheon is poised to benefit from rising demand for defense spending, especially information technology."

Richard J. Maroney, editor, Dow Theory Forecasts, Hammond, Ind.:

A.J. Gallagher & Co. (AJG), insurance brokerage. Share price: $26.17. Annual dividend: 72 cents. Dividend yield: 2.75 percent. "The company increased its dividend in 17 of the last 18 years. Gallagher has announced plans to use its excess cash flow to further boost the dividend."

Citigroup Inc. (C), financial services. Stock price: $43.45. Annual dividend: $1.40. Dividend yield: 3.22 percent. "As more cyclical parts of banking, investment banking and business loans, come back, they are well positioned to benefit. If you could only have one financial stock, this is the one to own."

Wells Fargo & Co. (WFC), financial services. Stock price: $50.10. Annual dividend: $1.80. Dividend yield: 3.59 percent. "The bank holding company has solid internal revenue growth and returns on assets and equity, the kind of attributes that can support future dividend growth."

Gerald Perritt, co-manager, Perritt Microcap Opportunities Fund, Dade City and Chicago.

Boston Acoustics Inc. (BOSA), manufacturer of audio speakers. Share price: $11.00. Annual dividend: 36 cents. Dividend yield: 3.27 percent. "Its products are offered by audio-video dealers throughout the U.S., Canada, Europe and Asia. The company is conservatively managed, profitable and has no long-term debt."

Flexsteel Industries Inc. (FLXS), furniture manufacturer. Share price: $17.40. Annual dividend: 52 cents. Dividend yield: 2.99 percent. "Growing residential and recreational vehicle sales have boosted total revenues, earnings and margins. Expect earnings to rise approximately 20 percent in 2004. Shares are currently priced at a modest 12 times trailing 12-month earnings."

Oil-Dri Corp. of America (ODC), manufacturer of cat litter and other absorbent products. Share price: $12.00. Annual dividend: 36 cents. Dividend yield: 3 percent. "Consumer products include Cat's Pride and Lasting Pride cat box fillers. At its current price, the stock is trading at about 90 percent of book value and at a very modest 40 percent of sales."

Paul Puryear, director of real estate research, Raymond James & Associates, St. Petersburg

Health Care REIT Inc. (HCN), real estate investment trust specializing in long-term health care facilities. Share price: $30.53. Annual dividend: $2.34. Dividend yield: 7.66 percent. "Given the high growth rate for the over-80 age group and the now restricted supply of new properties, we believe the long-term fundamental outlook is compelling. The company has investments in 248 health care facilities in 33 states."

Equity One Inc. (EQY), real estate investment trust focused on redevelopment and management of neighborhood and community shopping centers. Share price: $17.10. Annual dividend: $1.08. Dividend yield: 6.32 percent. "The company owns 179 properties, 45 percent in Florida. Most are anchored by supermarkets or other necessity-oriented retailers."

Winston Hotels Inc. (WXH), real estate investment trust specializing in limited-service and extended-stay hotels. Share price: $8.78. Annual dividend: 60 cents. Dividend yield: 6.83 percent. "These hotels are less impacted by economic swings and disruptions from air travel, offering more stability. The company has investments in 52 hotels in 17 states."

Robert Doyle, money manager, Spoor, Doyle & Associates, St. Petersburg

General Electric Co. (GE), manufacturing and financial services. Share price: $28.46. Dividend: 76 cents. Dividend yield: 2.67 percent. "CEO Jeffrey Immelt is doing a very good job. He seems to have a firm grasp on which direction the company is headed. It's a solid play."

Dominion Resources Inc. (D), electric utility. Share price: $59.32. Dividend: $2.58. Dividend yield: 4.35 percent. "They have history of increasing the dividend and the financial ability in the foreseeable future to continue that trend."

BB&T Corp. (BBT), financial services. Share price: $34.74. Dividend: $1.28. Dividend yield: 3.69 percent. "They've done a very good job of growing their asset base throughout the Southeast. They have very consistent, stable management. Those kind of banks are a great place to be."