What are we looking for?
Sustainable dividends set to accelerate on rising demand for electric cars.
Until Volvo revealed plans to go “electric,” Tesla was sucking all of the oxygen out of the auto industry. The rollout of its $35,000 (U.S.) Model 3 sedan is the latest headline grabber. Still, for Tesla to justify its whopping $51.9-billion market cap, it must prove it can make enough vehicles, including the half-a-million it forecasts for 2018. That challenge will likely keep the stock volatile – and dividend-less.
Auto makers that may benefit from the electric car revolution
|Ranking*||Company||Ticker||Market Cap ($Bil)**||Dividend Yield||Points||Dividend Sustainability Rating|
|1||Ford Motor Co.||F-N||45.3||5.2||8||Above-average|
|2||Toyota Motor Corp.||TM-N||179.1||3.6||8||Above-average|
|3||Nissan Motor Co.||NSANY-OTC||43.9||4.2||8||Above-average|
|4||Honda Motor Co.||HMC-N||49.9||3.1||8||Above-average|
|5||Magna International Inc.||MG-T||23.5||2.5||7||Above-average|
Source: Dividend Advisor; *Ranking is determined by TSI Dividend Sustainability Score. Where overall points are the same, analysts considered P/E, dividend yield and industry outlook to decide final placements.**Market cap is in native currency.
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