Volkswagen Vz

Volkswagen, based in Wolfsburg, is one of the world's largest carmakers, an empire that stretches from the mass-market VW and Skoda brands to premium Audi and the sports-car maker Porsche. That scale is both a strength and a burden, as the group navigates a costly shift to electric cars and fierce new competition in China, once its most profitable market. The preference shares are a traditional high yielder, with the dividend set as a share of profit. That means a generous payout in strong years and a smaller one when earnings come under pressure. Investors here accept the swings of the auto cycle and the uncertainties of the electric transition in exchange for one of the higher yields in the index.