The correct answer is      (D.) DaimlerChrysler 7.25% Trust Preferred Stock (PYO)

It's true: you can make money in the car business. Daimler (NYSE: DAI), most known for its luxury-car brand Mercedes-Benz, is the company behind preferred shares that are reaping tidy profits and steady income for investors. Despite being in a vulnerable industry of late, the company's cost-savings measures have helped it raise $2.7 billion in new capital, preserve cash, and retain a relatively sound balance sheet.

Through its North American subsidiary, Daimler is also the largest heavy truck maker in the U.S. The German car maker holds a major stake in EADS, Europe's largest supplier of aerospace and defense services, which owns Boeing rival Airbus. Daimler gets about half of its sales in Europe.

Formerly known as DaimlerChrysler, the company changed its name to Daimler in 2007, when it sold its controlling interests in Chrysler to a subsidiary of private equity firm Cerberus. Daimler assumed DaimlerChrysler's debt, including the trust preferred stock. As "third-party" trust preferred stock, Merrill Lynch (now part of Bank of America, NYSE: BAC) packaged and issued shares of PYO, but Daimler is responsible for interest and principal payments on the underlying bond.

Those interest payments totaling $1.8125 annually give the stock a yield of 9.7% at today's share price ($1.8125/$18.66). Payments are made twice a year and are taxed as interest income, so PYO is best held in a tax-deferred account. Moody's and Standard & Poor's give the securities investment-grade "A3" and "A-" ratings, indicating that payments and principal are considered highly secure. The notes can be called after July 18, 2009, for $25 a piece and mature in 2031.

PYO is a fine example of how foreign markets can offer exceptional yields, reliable income, and share price appreciation—if you know where to look. With that in mind, StreetAuthority editor Carla Pasternak scoured the globe to find ten amazing securities with average yields of 12% that also delivered better than 21% in shareholder returns year-to-date. Carla profiles her picks—several of which have higher yields and returns that PYO!— in the latest issue of the High-Yield International newsletter. To see Carla's picks, and to learn more about High-Yield International, please visit this link.