EV Stock Picks For Novices That Pay Electrifying Dividends
Fueled by widespread demand, government incentives, digital innovation, and performance-hungry investors, top electric vehicle (EV) companies and traditional automakers are in for yet another banner year, as the EV market swells.
In 2021, the International Energy Agency (IEA) reported that global sales for electric cars and battery-operated vehicles doubled to 6.6 million.
Last year alone, new registered EVs accounted for roughly 5.8% of all new cars sold in the United States, marking an increase from the 3.1% reported a year earlier.
Manufacturers across the auto industry are now entering the electric vehicle production race, making the start of a global shift from combustion to clean and sufficient vehicle performance.
McKinsey Center for Future Mobility estimates that around 500 new EV programs could be hitting the roads this year, only further accelerating the expansion of the global electric car market.
With positive growth all around the industry, and would-be buyers looking to make their first EV purchase despite enduring elevated prices, many novice investors could look to these dividend-paying EV stocks to help plump up their portfolios.
Ford Motor
Perhaps not the first automaker that comes to mind when picking electric vehicle stocks for any novice portfolio, yet Ford Motor Co (NYSE:F) has entered the EV race at lightning speed, hoping to claim a spot at the top among other higher-end EV automakers such as Tesla and Rivian, among others
In March 2022, Reuters reported that Ford announced it will be investing around $50 billion in the development of electric and battery-powered vehicles in the coming years, as the company not only sits with the labor power to achieve these ambitious goals but also hosts the technical ingenuity and innovation to build some of the most competitive EVs.
Compared to other industry leaders, Ford stocks are well-priced for dividend-hungry investors who are only now starting. Dividend yields stand at 3.08%, and stock prices are relatively cheap, with year-to-date (YTD) performance up close to 6%.
Although the company missed its bottom line performance earnings, stock performance has managed to rally upwards again, showing once again how resilient Ford’s cyclical business model is.
BYD Company
The Chinese electric car manufacturer, BYD Company (OTCMKTS:BYDDY) has quickly become a household name in the EV market, as one of the leading automakers of electric and hybrid vehicles. While 95% of the company’s sales are generated through its car sales, the company manufactures lithium-ion batteries and electronics among other devices.
Recently Bloomberg reported that the company has three South East Asian countries on its books for potential manufacturing hubs, including the Philippines, Vietnam, and Indonesia. The automaker has expanded exponentially over the last years, with growing interest coming from European markets as of late.
On the stock market however, BYDDY has seen YTD performance grow by 10%, and although dividends may still be small compared to other players at 0.04%, other long-standing seasoned investors such as Warren Buffet’s Berkshire Hathaway (NYSE: BRK.B), have become investors of the company holding a 7% stake in the company.
Albemarle Corporation
Earlier in the year, lithium and chemical component manufacturer, Albemarle (NYSE:ALB) set out positive milestones for the year ahead, as it expects lithium prices to remain elevated as demand continues to grow.
With this forward-looking possibility, Albermarle is poised to deliver a fresh supply of crucial components and parts needed to manufacture electric vehicles.
The dividend yield stands at 0.63%, yet stock prices have remained elevated above $250 throughout February, which might scare off potential novice investors.
But price here shouldn’t be the determining factor, as ALB has seen YTD performance jump by 17%, and growth is up by more than 32% in the last 12 months. The steady growth in EV demand, and seeing more competitors coming onto the global stage would only further fuel the company’s growth and performance.
Going forward, the company will be able to maintain its strong pricing position, and momentum will steadily increase over the coming years, which could make ALB a safe long-term bet for new buyers.
Parting Considerations
It’s becoming a highly competitive market, and traditional automakers and household names that hold the labor and innovation could become strong rivals for other high-end EV makers such as Tesla, Rivia, Nio, or Lucid, among others.
However, ongoing economic troubles such as stubbornly high inflation and higher interest rates could slow down consumer demand, and affect the global EV market, only to be felt in the latter half of the year.
While there is a lot of uncertainty floating around, and investors are urged to keep their finger on the pulse of ongoing developments, now could be one of the best times for novice investors to take their swing at dividend-paying EV stocks, before the market explodes even further.
This post originally appeared at ValueWalk.com.
Category: Lists of Dividend Stocks
