.bodytext {float: left; } .floatimg-left-hort { float:left; margin-top:10px; margin-right: 10px; width:300px; clear: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: 10px; 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: 10px; } .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: 10px; } .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 M.R.:

The banking industry has been knocked, socked, rocked, scared and scalped silly by the subprime mortgage market. The share prices of many banks have dropped between 25 percent and 50 percent and the gutters are running red from the scalping. There’s an old axiom that applies here: “When there’s blood on the Street, it’s time to buy.” And it looks like there might be some good pickings in the following seven issues, each of which has increased its dividend every year since 1981.

I think it’s time to buy Bank of America Corp. (BAC-$42.82). Its dividend has been raised every year since 1979 and the current payout yields a swell 6 percent. Fifth Third Bancorp. (FITB-$27.50) has increased its dividend for 26 consecutive years and the current $1.68 returns 6.1 percent. Another superb dividend payer is BB&T Corp. (BBT-$33.12); it has a $1.84 payout yielding 5.6 percent. Comerica Inc.’s (CMA-$42.95) superb dividend record cannot be denied and its current $2.56 yields 6 percent. You must also own Regions Financial Corp. (RF-$23.77) because its long record of dividend growth and the current $1.44 distribution yields a rich 6.1 percent. Now First Horizon National Corp. (FHN-$20.15) is off 56 percent from its 12-month high and after 26 years of increasing dividends, the current $1.80 payout is a rich 8.9 percent. And KeyCorp (KEY-$25.02) has $1.46 distribution yielding 5.8 percent. These banks are my Big Seven!

You must know that yields between 5.6 percent and 8.9 percent are not considered unattractive in this market, especially when six-month Treasury bills are paying 3.5 percent.And those yields are even more attractive when you consider that the Federal Reserve may continue to drop interest rates a few more times in the coming 12 months.

The icing on those yields is the high probability that each of the Big Seven, in order to maintain their prestigious and exclusive dividend growth records, will probably increase their dividends in 2008. And I’m willing to wager six bits to a biscuit that each of the Big Seven may trade at least 10 percent higher a year from now.

When the market seems to be crashing down on us, when the economy seems to be faltering, when the dollar is trading at a 30-year low against most currencies, when our national debt continues to skyrocket, when the housing crisis is drowning in glut, when our balance of payments continues to zoom, when you’re constantly hearing the “R” (recession) word and when your broker begins to suggest that you might increase your cash position … it’s bloody darn difficult to be coolly objective. But that’s what separates the men from the boys and pays for their toys in life.

Grab some courage and purchase each of the Big Seven. The package will cost you about $24,000 with commission and pay you $1,400 in dividend income, which I believe should have average increases of about 8 percent to 9 percent each year. And that’s less than their real average annual increases during the past 10 years. Take the bull by the tail and tell your broker to buy 100 shares each of the Big Seven today. 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