PACCAR Inc. (PCAR)

The truck market is intensely cyclical: carriers order when freight rates are high and stop when they are low, and the gap between a good and a bad year runs to multiples. The company's distinction is staying profitable at the bottom of the cycle, which competitors do not always manage.

That comes from manufacturing flexibility and, more importantly, a second pillar: parts and service for the installed fleet. A truck runs a million kilometres needing consumables throughout, and service revenue barely falls in a downturn while carrying better margins than new sales.

The third part is a finance arm lending to buyers: it supports sales and adds credit risk. Risks: freight rates, emissions requirements and the transition to other powertrains. The company pays a regular dividend plus a variable one.