.floatimg-left-hort { float:left; } .floatimg-left-caption-hort { float:left; margin-bottom:10px; width:300px; margin-right:10px; clear:left;} .floatimg-left-vert { float:left; margin-top:10px; margin-right:15px; width:200px;} .floatimg-left-caption-vert { float:left; margin-right:10px; margin-bottom:10px; font-size: 12px; width:200px;} .floatimg-right-hort { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 300px;} .floatimg-right-caption-hort { float:left; margin-right:10px; margin-bottom:10px; width: 300px; font-size: 12px; } .floatimg-right-vert { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 200px;} .floatimg-right-caption-vert { float:left; margin-right:10px; margin-bottom:10px; width: 200px; font-size: 12px; } .floatimgright-sidebar { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 200px; border-top-style: double; border-top-color: black; border-bottom-style: double; border-bottom-color: black;} .floatimgright-sidebar p { line-height: 115%; text-indent: 10px; } .floatimgright-sidebar h4 { font-variant:small-caps; } .pullquote { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 150px; background: url(http://www.dmbusinessdaily.com/DAILY/editorial/extras/closequote.gif) no-repeat bottom right !important ; line-height: 150%; font-size: 125%; border-top: 1px solid; border-bottom: 1px solid;} .floatvidleft { float:left; margin-bottom:10px; width:325px; margin-right:10px; clear:left;} .floatvidright { float:right; margin-bottom:10px; width:325px; margin-right:10px; clear:left;} Dear Mr. Berko:

Dear D.L.:

Jiminy Christmas, Holy Hanukkah and Super Kwanzaa. Finding undervalued, high-yielding equities that should maintain or increase their dividends and maintain or improve their market values is as difficult today as performing brain surgery while wearing mittens. As you know from column recommendations made between mid-2008 and the third quarter of 2009, it was a shoo-in.

There are still a few undervalued issues hidden behind the trees in the forest, but one has to be a Davy Crockett or a Daniel Boone to hunt them down. So I donned a coonskin cap and unsheathed my Bowie knife, and here’s what I found.

Cherokee Inc. (CHKE-$16.25), a small $40 million revenue company with 8.1 million shares outstanding, pays a $1.52 per-share dividend that yields 9.4 percent. CHKE licenses brands and trademarks for footwear and accessories such as Sideout, Carole Little, Laila Ali, Kelly Hoppen, David Rodriguez and All That Jazz. It holds 18 licenses and has a strategic agreement with Target Corp. Best of all, this 20-employee company has net profit margins of 38 percent and zero debt. The stock traded in the high $30s and $40s for years before the market crashed; its 52-week range is $11 to $24.

Vector Group Ltd. (VGR-$13.79) pays a $1.60 per-share dividend and yields 11.6 percent. VGR makes and sells cigarettes in the United States. It produces 180 combinations of length, style and packaging under the Liggett Select, Grand Prix, Eve, Pyramid, Quest and USA names. This $411 million revenue company has net profit margins of 5.74 percent, and before the market crash, its shares traded between $17 and $20 per share. VGR has paid a yearly 5 percent stock dividend since 1999, and its trading range in the past 52 weeks has been $11 to $17.

Medallion Financial Corp. (TAXI-$7.91) originates, acquires and services loans that finance taxi cab medallions. This $45 million revenue company has 18 million shares outstanding, paying a dividend of 76 cents per share that yields 9.6 percent. TAXI has a 21 percent net profit margin and free cash flow of $8.7 million. Prior to the crash, TAXI traded between $10 and $14, and its 52-week range is $3.26 to $9.60.

Finally, Alaska Communications Systems Group Inc. (ALSK-$6.85) runs a wire line and wireless communications system in Alaska that lets Alaskans to talk with friends and family in Zimbabwe, Peru, China, Australia and every nook and cranny in the lower 48 plus Hawaii. This $389 million revenue company pays a dividend of 86 cents per share that yields 12.6 percent and has net profit margins of 5.7 percent. Prior to the crash, ALSK traded between $8 and $11, and the dividend has been raised each year since 2004.

Please remember that these issues are only suitable for investors who are comfortable with slightly more than modest risk.

Please address your financial questions to Malcolm Berko, P.O. Box 1416, Boca Raton, Fla. 33429 or e-mail him at malber@adelphia.net. © Copley News Service