The correct answer is      (C.)  Canada

Canada has six major domestic banks, which account for over 90% of the assets of the country's banking industry. Although these banks are not exactly household names for U.S. income investors, they should be. They sport dividend yields of up to 8.4%, boast an average three-year dividend growth record of +16.8%, and have upped their dividends over the past year by an average of +18.8%--and thus far there hasn't been a single dividend cut among them.

Canada's banks are tough. Last month, they were rated the strongest in the world by the prestigious World Economic Forum, and they score top marks as the most solvent among 134 countries. The banks are also rated fifth in the world for investor protection and sixth for financial market sophistication. Standard & Poor's recently came to the same positive conclusion about Canadian banks, writing in a mid-October client note that Canadian banks are well positioned to weather the downturn.

The Canadian government has indeed taken steps to ensure the country's banks remain competitive on the world scene. It pumped C$25 billion of liquidity into the country's financial system, agreed to guarantee up to C$215 billion of capital, agreed to buy up to C$75 billion of government-insured mortgage securities, and committed to further steps to protect Canadian banks from the global credit crunch.

Despite getting top marks and government protection, Canadian banks are being punished along with their peers in the U.S. and Europe. That spells opportunity. Because price and yield move in opposite directions, as share prices have fallen, yields on Canadian bank stocks have risen to unprecedented levels. As an added bonus, the reverse side of these above-average yields is the below-average prices these bank stocks are sporting right now.

With this in mind, StreetAuthority editor Carla Pasternak has analyzed the Canadian banking market and unearthed two top picks, for which she offers in-depth analyses in her latest issue of the High-Yield Investing newsletter. Both picks offer double-digit one-year and three-year dividend growth, are yielding well over 8.0%--in this market!--and are positioned to weather the frosty economic climate in top shape. To learn the names of these stocks, and to learn more about High-Yield Investing, please visit this link.