Paccar

Paccar is a leading manufacturer of heavy-duty trucks, selling under the Kenworth, Peterbilt and DAF brands across North America, Europe and beyond. Beyond building vehicles, it runs a sizeable parts and financial services operation that smooths the deep cyclical swings inherent in the commercial truck market. Paccar has paid dividends consistently for many years and regularly tops up its regular payout with special dividends in strong years, a reflection of its conservative balance sheet. The base yield looks low, but total returns to shareholders can be meaningfully higher once specials are counted. Its solid score points to disciplined, well-covered distributions from a financially cautious industrial operator.