(MONEY Magazine) – THE DIVIDEND YIELD ON THE AVERAGE STOCK IS at the lowest level since the 1920s. As the chart shows, the Dow now pays 2.3%, a puny amount compared with its historical 4.4%.

This is bad news not just for investors looking for income but for all shareholders. The Dow's record low yield is a sign that stocks are too pricey relative to the dividends they pay.

Sooner or later, an overpriced market takes a tumble. So it's smart now to favor issues that have the support of solid dividend yields. We've identified four stocks analysts like that pay more than 5% and could provide 15% total returns over the next year. The four, which trade on the New York Stock Exchange, are discussed in order of their yields.

Hanson (ticker symbol: HAN; recently traded at $15.75 with a 6.2% yield). During the 1980s, this British conglomerate boosted earnings eightfold by shrewdly buying and selling other companies. The dealmaking slowed after 1990, but now Hanson is at it again. The firm's current businesses include chemicals, coal, energy, tobacco and building materials; annual revenues total around $16 billion. "Hanson has announced it is selling two divisions and we expect more sales later this year," says analyst Jack L. Kelly at Goldman Sachs in New York City. As Hanson raises cash to pay down its hefty $4.6 billion debt, Kelly thinks the stock could climb as high as $18.

Arco Chemical (RCM; $49.50; 5.7%). Atlantic Richfield owns 83% of Arco Chemical, so the amount of stock that trades is limited. That holds down the share price, explains analyst John Parry at John S. Herold in Stamford, Conn.Nonetheless he rates the $4.2 billion company's stock as a good long-term choice. One reason: A multibillion-dollar program of capital improvements and cost cutting has pumped up earnings. "The cash earned per share rose from $5.63 in 1994 to $7.45 last year and could climb to $7.85 in 1996," says Parry. "As a result, the company could boost its dividend from $2.80 a share to $3." Such a hike could help push the stock price to $55.

General Public Utilities (GPU; $33.50; 5.6%). One of the largest electric utilities in the U.S., with 1.9 million customers in New Jersey and Pennsylvania, $3.7 billion GPU is the owner of the Three Mile Island nuclear plant that nearly melted down in 1979. But, says analyst Linda Byus at Duff & Phelps in Chicago, "As time goes by, the Three Mile Island accident hurts the stock less and less." Currently, GPU is trimming costs and has been negotiating more favorable contracts for the 40% of its power that is purchased. Increasing competition among suppliers will likely make 1996 a good year for GPU, says Byus. She thinks the share price could rise to about $37.

Ogden (OG; $22.75; 5.5%). This $2.2 billion conglomerate has strong positions in aviation services such as airport management and baggage handling and in entertainment. At more than 110 arenas and stadiums worldwide, Ogden handles everything from ticketing to serving food and overseeing parking. "The company plans to sell off everything not related to aviation, entertainment and waste management," says Merrill Lynch analyst Carol Neves. As Ogden focuses on these profitable industries, Neves sees the stock moving up to $25.

ALL STOCK DATA AS OF JAN. 8

Reporter associate: Malcolm Fitch

Wall Street editor Michael Sivy is a chartered financial analyst and a former Wall Street research director.