.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.R.:

Of course you know that the reason penny stocks sell for pennies is because pennies are what they are worth. I think that broker ought to petition the court to have himself legally declared a cockroach. This cur is dangerous to your wealth. Penny stocks are for penny brains whose total sum of knowledge and expertise is worth a copper.

Many folks claim they’ve made big scores in the penny stock market, and many have. However, those penny brains never tell you of the numerous huge losses they absorbed in order to earn bragging rights for just one score. And it has been my experience that penny-stock buyers enormously inflate the profits they brag about.

Meanwhile, the following three high-yielding stocks have a better-than-even chance of maintaining their high dividends, growing their businesses and improving their stock values.

Cellcom Israel (CEL-$34.20) is one of three cell phone companies in Israel, but seems to have technical superiority over the other two. CEL’s system does everything BlackBerry, iPhone and iPod do, including push to talk, Internet connectivity, SMS and MMS services, animation messages and interactive protocols. CEL had $1.7 billion in revenues in 2009, and with net profit margins of 17.6 percent, the company earned $3.12 per share. The $2.72 dividend yields 8.0 percent.

Windstream Communications (WIN-$11.32) is a specialty phone company that provides landline, Internet, long distance, network access and video service to 3.2 million customers in the very rural areas across 16 American states. This $3.1 billion revenue company has a 13 percent net profit margin, and its $1.00 dividend yields 8.8 percent.

Finally, Century Telephone (CTL-$35.34), which acquired Pacific Telecom (an AT&T spinoff) in 1997, is the fourth-largest phone company in the United States with $7.1 billion in revenues It boasts a blue-chip balance sheet and sound finances. CTL has 10 years of consecutive earnings growth, and its 15 percent net profit margins allow it to pay a $2.90 dividend that yields 8.2 percent.

Put these three in your meerschaum and enjoy an 8.5 percent or better average annual dividend return on your investment. Then sit back, smoke your pipe and wait for CEL, WIN and CTL to eventually rise in value.

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