Dear Mr. Berko:

Dear G.L.:

Your broker must have fallen off a stupid tree and hit every branch on the way down – either that, or he’s French.

Now, as certain as a fortnight is two weeks, I’m certain that the European markets will recover like pet rocks on amphetamine and dawdle closer to their previous highs in the very distant future. But one of the major impediments to the European Union’s recovery is its French and German leaders, who eased the EU into an undemocratic, elitist organization in an attempt to create a European superstate.

The original purpose of the EU was as a trade union to promote economic cooperation between member states – a grand idea back in 1957. But since then, the EU has functioned under the control of those power-hungry egos from Germany and France. Though the euro has become a major currency since its 1999 introduction, there’s some doubt it can survive the growing economic crisis.

The EU has become a bouillabaisse, with too many sovereign states that poison the broth. I’m not sanguine about the long-term economics of Europe. There are only two things I like about Europe: its hoi polloi and its phone companies. So if you must invest a portion of your portfolio in European issues, I’m comfortable recommending European telecommunications companies for their high dividends and because they are less affected by negative economic conditions than retail, manufacturing, chemical, transportation and other sectors.

The attractive dividend yields on the following issues can make a long recovery time more palatable.

Portugal Telecom (PT-$7.12) pays 94 cents per share and yields 13.2 percent. PT operates in Portugal, Brazil and sub-Sahara Africa. Its debt was recently downgraded, but certain deleveraging ahead portends a higher stock price. PT is trading near its 52-week low and expects record earnings of $1.21 per share in 2012.

Telephone Italia (TI-$10.05) pays 62 cents per share and yields 6.2 percent. TI has a healthy cash flow and other communication assets outside Italy. The stock is trading near its 52-week low, and analysts expect 2012 earnings to exceed $1.80 a share. So higher earnings could translate into higher dividends, which could mean a higher share price.

France Telecom (FTE-$15.52) pays a $1.37 dividend yielding 8.8 percent. FTE, which trades near its 52-week low, spent the past 18 months repairing its balance sheet after a shopping spree that enabled the company to report $66 billion in 2010 revenues. The Street believes earnings will grow to $2.14 per share, so it’s possible that the share price could move higher, too.

Vodafone Group (VOD-$24.58) is five nickels above its 52-week low, and its $1.92 dividend yields 7.8 percent. This is one of the largest mobile telecom companies in the world, and its crown jewel is its 45 percent equity in Verizon Wireless through a joint venture a dozen years ago.

Please address your financial questions to Malcolm Berko, P.O. Box 1416, Boca Raton, Fla. 33429 or email him at malber@adelphia.net. ©2011 Creators.com