Hensoldt AG

Hensoldt, based near Munich, is a leading defence-electronics company, making the radars, sensors and optronics that detect threats for armies, navies and air forces. Europe's rush to rearm has filled its order books and turned a once-quiet supplier into a fast-growing player in a strategically vital field. Hensoldt is a relatively young listing but has begun paying and raising a dividend as profits climb. The yield is modest because the shares have run up and the company reinvests in growth, so this is primarily a defence-growth story with a rising payout attached.