"The ongoing renaissance of Eastern Europe is generating tremendous economic activity, boosting profits for companies across the continent," says Nick Lanyi in High Yield International.

He explains, "As Europe's largest economy, Germany is well positioned to continue benefiting from this growth." And within Germany, his current top pick is Deutsche Telekom (NYSE: DT), which offers a dividend yield of 6.7%.

"German stocks are currently available at historically low valuations. The country's DAX Index is trading at only about 12 times 2008 earnings estimates, with an average dividend yield of 3.4%.

"One of the world's largest telecommunications companies, Deutsche Telekom is much more than the descendant of Germany's monopoly local phone utility. It generates more than half its revenue from outside Germany -- from diversified operations across Europe and in the U.S.

"Outside of Germany, DT garners more growth from its wireless operations in Eastern Europe, the U.K. and the U.S. Most of these operate under the well-known T-Mobile brand. Overall, worldwide wireless activities account for about 55% of the company's revenue.

"Deutsche Telekom's dividend has risen steadily over the past few years in its native euro currency. Thanks to appreciation of the euro versus the U.S. dollar, these dividend increases have also been augmented for U.S. investors buying the NYSE shares.

"Critics say its wireless operations face stiff competition in Germany, the U.K. and the U.S., which will curtail growth; further, DT has lower profit margins than many of its peers, a result of a bloated work force at home.

"Bulls -- including me -- argue that the company's relatively low profit margins and market shares mean there's room for improvement.

"And the evidence shows that DT is poised for better times ahead. DT has spent the past two years lowering its long-term debt and reducing its once-bloated employee count in Germany. That should lead to higher profit margins in 2008 and 2009.

"Further, DT has especially strong growth prospects in fast-growing Eastern Europe, where it is the lead investor in the #1 Hungarian and Polish phone companies. The company also recently acquired 20% of Hellenic Telecom, a Greek phone company that has stakes in Bulgaria, Serbia, and Macedonia.

"Deutsche Telekom is a German blue-chip that isn't as respected as it once was -- making its shares relatively inexpensive today. And the dividend yield is both high and safe. I recommend DT for all but the most conservative income investors."

"Investors should note that Germany imposes a 21.1% withholding tax on dividends paid to U.S. shareholders. U.S. citizens can apply immediately for a refund of 6.1% of that tax directly from the German government and receive a credit for the remaining 15% through a foreign-tax credit on their federal income-tax return."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.