Tesla Dividend: Will They Ever Pay Investors?

The appeal of growth stocks is that they have the potential for huge returns.

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Consider the massive rally by Tesla, Inc. (TSLA); in just the past three years, the stock has returned over 1,300% to shareholders.

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That’s a lifetime of returns and more for many investors, and Tesla has done this in a very short period of time.

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Business Overview

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Tesla was founded in 2003 by Elon Musk. The company started out as a fledgling electric car maker but has grown at an extremely high rate in the past several years.

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Amazingly, Tesla’s current market capitalization is more than seven times the combined market caps of auto industry peers Ford Motor (F) and General Motors (GM).

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Tesla is off to a good start to 2022.

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Growth Prospects

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Tesla’s primary growth catalyst is to expand sales of its core product line, as well as generate growth from new vehicles.

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Companies like Apple (AAPL) and Cisco Systems (CSCO) have initiated dividends in the last decade because their shareholder bases demanded a dividend, and their business models generated consistent free cash flow.

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