Hermès International S.A.

Hermès, the family-controlled Paris house famed for its Birkin and Kelly handbags, silk scarves and leather goods, sits at the very top of the luxury market. By deliberately limiting supply and controlling its own craftsmanship, it commands extraordinary pricing power and margins, and has proved more resilient than rivals when luxury demand cools. Hermès pays a modest but reliably growing dividend, occasionally topped up with a special payment, funded by exceptional cash generation. The yield is small because the shares trade at a rich premium, so the stock rewards quality and long-term compounding rather than income seekers.