Elmos Semiconductor

Elmos, based in Dortmund, designs the analogue and mixed-signal chips that manage functions in cars, from sensors and lighting to comfort and safety systems. As vehicles grow more electronic, the number of its chips per car keeps rising, giving it a structural tailwind despite the cyclicality of the auto market. Elmos has paid and steadily raised its dividend for years, backed by strong margins and cash flow. The yield is moderate, and the combination of reliable dividend growth and exposure to automotive electronics gives it one of the more attractive profiles in the index.