Rating the 7 Electric Vehicle Stocks That Pay Dividends
Electric vehicle stocks have been on the rise in recent years. However, there is a lot of uncertainty surrounding these stocks because of the overall market volatility.
Electric cars are becoming more popular because of the benefits that they offer. They have a smaller carbon footprint than gas-powered cars and use less energy. However, they must be charged by plugging them into a wall outlet.
As the world embraces electric vehicles, the stocks of companies dedicated to this industry are starting to surge. There are many reasons for this, including a push for cleaner energy sources and regulations limiting internal combustion engines in some places.
Unfortunately, due to soaring inflation, rising interest rates and global supply chain issues, the growth story for electric vehicles is taking a backseat. Despite this, new investors are still seeking opportunities, and companies are developing new products.
However, if you are an investor that does not want to take on a lot of risks and wants some income for your troubles, it is better to invest in electric vehicle stocks that pay dividends.
That’s right—not all companies in the EV space are expecting huge returns. Many are delivering and paying dividends already. You will recognize some great companies with a long history from this list. At the same time, you will find relatively new names also sharing the returns they are making with their shareholders.
| F | Ford | |
| ALB | Albemarle Corporation | |
| BYDDY | BYD Company Limited | |
| TM | Toyota Motor | |
| HOG | Harley-Davidson | |
| BMWYY | Bayerische Motoren Werke AG | |
Electric Vehicle Stocks: Ford (F)
Dividend Yield: 3.08%
Ford (NYSE:F) is a multinational automaker, one of the world’s largest. For decades, Ford has been providing high-quality and reliable cars to customers all over the world.
Ford introduced methods for large-scale manufacturing of cars and large-scale management of an industrial workforce using elaborately engineered manufacturing sequences typified by moving assembly lines.
Ford has been a pioneer in the automotive industry for more than a century, and it is now leading the way in the move toward electrification. Ford’s first electric vehicle, the Ford Focus Electric, was introduced in 2011.
The company has since rolled out a number of other battery-powered models, including the Ford Fusion Energy and the Ford C-Max Energi. Ford announced that it would invest $50 billion in electric vehicles.
It is also working on developing autonomous vehicles. With its cutting-edge technology and commitment to innovation, Ford is poised to play a major role in shaping the future of transportation.
Ford’s dividend yield is excellent in the industry, allowing it to stand proud among yield-seeking investors. Although Ford is a highly cyclical business, it has a history of adapting and changing with the times. The automaker is thinking ahead to the financial hurdles in this current market. Its investment in EVs and autonomous vehicles are part of this.
Albemarle Corporation (ALB)
Dividend Yield: 0.70%
Albemarle Corporation (NYSE:ALB) is a maker of specialty chemicals. It operates through two segments: specialty chemicals and pigment intermediates. The company produces bulk, high-quality lithium, bromine, and many catalysts used in the production of plastics.
Lithium is a chemical element that plays an important role in electronic devices. It is used to produce lithium-ion batteries that power smartphones, laptops, and more. Demand for lithium that helps to produce these batteries has benefited companies like Albemarle and helped the company grow in recent years.
The company had a strong Q1 and raised its guidance three times. This is due to impressive results in the lithium and bromine business and good trends in the other business segments.
The primary reason for the hikes is the completion of additional lithium contract renegotiations following its Q1 2022 earnings release. This will result in higher profits for the company and, in turn, shareholders. As a result, investors are advised to keep a close eye on the market in order to take advantage of any potential gains.
Albemarle predicts lithium demand to grow at a rate of 140% per year in the fiscal year 2020. The company expects its lithium segment’s annual adjusted EBITDA to grow by 300% in 2022, up from an earlier range of 200-225%.
Albemarle’s lithium business is a big part of the company moving forward. Hence, you do not have to worry about its status as a Dividend Aristocrat. So, you can treat ALB stock can be treated as a growth stock and an income play.
Electric Vehicle Stocks: BYD Company Limited (BYDDY)
Dividend Yield: 0.04%
BYD Company Limited (OTCMKTS:BYDDY) has been a Chinese electric vehicle manufacturer on the market since 2003. It is a subsidiary of BYD Company Group, founded by billionaire Wang Chuanfu.
BYD Company Limited is a company that has been on the market for over ten years and has grown to be one of the most successful and well-known companies in China. It is also considered one of the top ten global brands in China. This company has been able to maintain its success through innovation and to be able to produce high-quality products at lower costs than competitors.
In 2021, BYD will sell more electric vehicles in China than Tesla. EV sales have more than doubled to 320,000 and will continue to grow as the Chinese government looks for less pollution-inducing solutions. Overall sales of plug-in hybrids also increased dramatically by 70%. And BYD is targeting sales of 1.5 million this year.
The company’s top-selling models include Qin Plus DM, Han, Song DM, and Yuan. This strategy of offering inexpensive electric NEVs has resulted in a high demand that has made it more popular among the masses and is likely to continue as time goes on.
Warren Buffett’s firm Berkshire Hathaway (NYSE:BRK-B) is also an investor in the EV company, giving it a boost when most investors want to stay away from Chinese stocks and the
Toyota Motor Corp (TM)
Dividend Yield: 1.58%
Toyota Motor (NYSE:TM) is a car manufacturing company headquartered in Toyota City, Aichi Prefecture, Japan. It is the world’s largest automaker by production volume.
For over six decades, Toyota has been a leading manufacturer in Japan and the world’s largest car company. Kiichiro Toyoda founded it in 1937 after he split off from his father’s company to create automotive parts.
Toyota Motor has not only been successful but also been at the forefront of innovation. It is constantly seeking new ways to improve its products and make them more efficient.
Hence, it comes as no surprise Toyota is also looking into making sure it becomes a great EV play. Instead of just relying on gas-fed cars, the world’s largest carmaker is spending over $35 billion to increase its focus and availability of electric vehicles. It expects to sell 3.5 million units annually by the end of the decade at factories worldwide.
Toyota is one of the world’s largest automakers, and it is widely respected for its quality, reliability, and innovation. The company has a strong track record of success, and its shares have outperformed the broader market in recent years. Toyota is also a strong dividend payer, and its shares offer a compelling yield.
Given Toyota’s strong fundamentals and compelling valuation, I believe it is a great investment idea for long-term investors. Toyota’s shares are currently trading down 14.55%, year-to-date. Hence, I will recommend buying Toyota shares at current levels and holding them for the long term.
Electric Vehicle Stocks: Harley-Davidson (HOG)
Dividend Yield: 1.78%
Harley-Davidson (NYSE:HOG) has been a part of American culture for over 100 years. It is known for high-quality motorcycles and cars.
Harley-Davidson, the iconic American motorcycle manufacturer, has been around since 1903. A brand once synonymous with freedom, independence, and rebelliousness is now struggling to stay relevant in today’s market.
In recent years, the well-known motorcycle manufacturer has struggled to remain relevant in the face of competition from Yamaha (OTCMKTS:YAMCF), Triumph, Ducati, and Kawasaki.
Harley-Davidson motorcycles are famous for their gas range, which typically depends on the type of bike. The average fuel range is from 120-to 200 miles between fill-ups, depending on style and gas capacity.
If we look at the last five years, sales have been on a decline, the most notable drop occurring in 2020, at the height of the pandemic. Sales recovered somewhat last year, which is a good sign for the bulls. Harley-Davidson has seen its volume of motorcycle deliveries increase by a respectable 8% over the past year, with global retail sales increasing as well.
It also has an eye toward the future with an all-electric offering, LiveWire, which will excite investors and fans alike. Harley-Davidson is betting that LiveWire will help to pave the way for a new era of electric vehicles. Only time will tell if this gamble pays off, but Harley-Davidson is clearly committed to leading the charge into the future.
Bayerische Motoren Werke (BMWYY)
Dividend Yield: 7.54%
Bayerische Motoren Werke AG (OTCMKTS:BMWYY), commonly referred to as BMW, is a German automobile manufacturer in the business since 1916. Their cars are known for their safety, luxury, and performance.
The company has a strong reputation for innovation and success. It is the largest car maker in Europe, producing over 2.5 million cars sold last year. BMW is one of the most innovative companies in the world, with over 61,000 patents registered to date.
BMW is one of the most iconic car brands in the world, and it has led to many different types of vehicles. In addition to cars, BMW also produces motorcycles, trucks, buses, and trains.
The chip shortage has negatively affected GM, Ford, Toyota, VW, and Nissan (OTCMKTS:NSANY). BMW has fared better than many rivals regarding the chip shortage, though production constraints have led to a drop in sales.
To keep up with the times, BMW will invest $30 billion in electric and self-driving cars by 2025. BMW has already sold one million EVs and plans to reach two million sales by 2025.
Electric Vehicle Stocks: Magna International (MGA)
Dividend Yield: 2.91%
Magna International (NYSE:MGA) is a multinational automotive manufacturing company headquartered in Canada. It has been at the forefront of automotive innovation for over 50 years.
Magna International has caused quite the anticipation by announcing its plans to move towards electrification of vehicles to meet the needs of the market demand. It cites a huge market demand for it.
Magna recently announced its eBeam technology, an electric axle drive system that you can install on various vehicles. It was one of the precursors to this entire spotlight. Due to this design, eBeam has eliminated the need for a traditional transmission, rear axle, and frame.
Magna provides important components for multiple automakers. And the eBeam can be implemented with chassis of different sizes.
In addition, Magna, one of the few companies in the world that offers a wide range of electric powertrain solutions and autonomous drive, is developing technologies in-house that upend traditional industry norms. You can find Magna’s technology on 250+ vehicle models! This direct election of ADAS technology is due to global expansion, partnerships, and the new generation of ADAS tech.
On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
