In the midst of one of history’s worst global recession, Europe’s luxury automakers are raking it in.

BMW has announced a whooping 51% increase in net income, mostly from sales of its luxury models. In 2011, a year where many people took to the streets to beg for money, food, or both, BMW had its best year in its history. Thankful that so many Chinese and North Americans are buying their cars, management will raise its dividend to E 2.30 from E1.10, that is for those who have enough pocket change to own its shares. Chief Executive Norbert Reithofer bemoans the fact that sales in Europe, which is on the brink of a great recession, mini civil wars or Occupy Alles, have been an “uphill battle”.

But not to worry. There are enough yuppies in the US and China lusting after the perfect Beamer to sustain the company through this, and other, European debacles. If sales are up 14% with the slight economic recovery in the US, imagine what a full fledged global recovery will do for this company. And don’t think that it is their smaller models that did well, being that we are in a recession. No, none of that: sales of its 7 series sedan rose 14%, and its X3 sport utility doubled its sales numbers. But wait! Who would want to drive around in a luxury car, trying to avoid panhandlers, tents set up by the homeless on the side of the road, or the Occupy Wall Street mobs? As a matter of fact, many people would, as sales of the Rolls-Royce brand rose by 30% last year. Given that the average combined sticker price of a 7 sedan, an X3 and a Rolls exceeds the average income in the US and China, plus Germany and France and dozens of other countries combined, what was the buyers motivation?

Ah, the smell of a brand new Beamer, the fresh leather seats, the perfect sound system to keep away the cries of the hungry and the unemployed...

Just as an aside, I am also proud to report that today, on International Woman’s Day, BMW announced that it hired a woman to a top management body for the first time. Of course, since women like myself don’t know much about cars, Ms. Milagros Caina-Andree was given the much sought after job of head of human resources. Vielen dank, Herr Reithofer!

Market advice? Luxury sells, especially in the middle or a recession. And, if you are looking for dividend, this one’s not a bad one either.