Electric Vehicle Related Dividend Stocks
Before you start buying Tesla, I recommend reading my article about dividend stocks in the electric vehicle space. There is a chance the stock will pay dividends in the future, but how will you know when it will do so? I'll share my research for electric vehicle related dividend stocks so you can get your foot in the door early and hold them forever. By the time you read this article, you'll be well-versed in all things electric vehicle related.
Investors interested in dividend stocks related to electric vehicles should pay attention to Anthem Inc., as it has become a hot stock lately. The company has a long history of supporting electric vehicles and has built a network of charging stations. Its shares are currently down about 1.9% on Monday. Other dividend stocks related to electric vehicles are CNO Financial Group Inc., Simon Property Group Inc., and GE Capital.
Investors should take note that Anthem's profits have increased on average by 18% per year over the past five years. It has beaten analyst expectations in 13 of its past 14 quarters. And, it pays an average dividend yield of 9%. This makes Anthem an attractive dividend growth stock for both current investors and those who are looking for future dividend growth. And, it's currently priced at only 12 times its projected 2020 earnings, which is well below its historical median of 14.
If you're looking for a stock to add to your portfolio, consider BorgWarner Electric vehicle related dividend stocks. As an American automotive parts manufacturer, BorgWarner designs and manufactures engines and powertrains for automobiles. Many top brands choose BorgWarner components as their OEM. After introducing dual-clutch transmissions for BMWs, the company gained a solid reputation in Europe.
EV-related stocks have also done extremely well in 2020 and are expected to continue rising in early 2021. Jim Woods, the editor of Successful Investing and Intelligence Report, and co-head of the Fast Money Alert trading service, weighed in with his recommendation for the EV stock to buy. According to Bob Carlson, chairman of the Fairfax County Employees' Retirement System, the EV industry is expected to benefit from federal stimulus funds when Democrats take control of the U.S. government.
The company's strong position in EVs and its growing customer base make it an ideal investment for dividend investors. The company's share price is currently trading at 8.6 times next year's earnings estimate. The company also recently acquired Santroll Automotive Components' light vehicle eMotor business, which should boost its vertical integration and help scale production. Once the EV revolution begins in earnest, BorgWarner will be one of the EV-related dividend stocks to buy.
NEE isn't an EV stock, but they definitely supply EVs with energy! While investing in EV stocks is not without risk, the company has a strong track record of generating shareholder value. Over the past decade, NextEra has generated 700 percent total return, thanks to strong dividend growth and adjusted EPS share growth that has been above average. In fact, NextEra has increased its dividend for 25 consecutive years, earning it the distinction of Dividend Aristote.
As one of the largest independent power producers in the United States, NextEra Energy has grown at a faster pace than the average utility company. With investments in renewable sources, it is a leader in the energy industry. The company also offers a variety of clean energy solutions and is ranked among the best utilities by Standard & Poor's. NextEra Energy is also making its way into mobility, by acquiring eIQ Mobility, a company that provides services to help businesses plan for their electric vehicles.
Tesla considering a dividend
If you have been watching Tesla for a while, you might have noticed that it has not paid a dividend in over four years. This is because Tesla is only recently profitable, and its growth is so rapid that it could have problems keeping its doors open. Even so, this does not mean that Tesla will never consider paying a dividend. Companies like Cisco and Apple have been paying dividends every quarter for years, and it is possible that Tesla could follow suit some day.
While the stock is at an all-time high, it would make no sense for Tesla to pay a dividend at this time. Given the current stock price of around $900 USD, Tesla could only afford a small dividend yield of less than 0.1%. But even then, it would be better to retain cash to reinvest and grow. In the long term, it is more profitable to keep cash in the company's balance sheet for reinvestment and growth than to pay a small dividend. As an investor, you should be patient with Tesla and let it accomplish its mission to transform the world into a sustainable energy future.