MTU

MTU Aero Engines, based in Munich, is Germany's leading maker of aircraft engines and a partner in many of the programmes that power the world's passenger jets. Just as important is its large maintenance and repair business, which services engines throughout their decades-long working lives and produces a long, predictable stream of aftermarket revenue. Rising air traffic and full order books give MTU strong growth prospects, and management has paired that with a steadily increasing dividend. The yield is modest because the company reinvests to grow, but the combination of expanding profits and reliable dividend rises makes it an attractive blend of growth and income.