Toyota is an Auto Stock for Diversified Portfolios

ToyotaEvery well-diversified stock portfolio should contain an automotive element, and there are few auto stocks that are as strong as Toyota Motor Corp. (NYSE: TM). The company is one of the world’s largest automakers with a powerful brand behind it. It is operationally efficient with mechanisms in place to evolve with consumer trends. Here’s why this stock is worth considering in 2019.

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Toyota provides some of the highest returns of any company in the auto industry. Over five years, it has returned 20.9% in shareholder value, or 37.6% when including dividends. This compares favorably to the -10.5% decline of returns across the automotive sector.

The company has increased year over year revenue for all but one of the last five years. In its 2019 fiscal year, revenue increased 2.86%, with a gross profit margin of 17.95% achieved.

Toyota is ready to adapt to a market with higher demand for electric vehicles. It has had longstanding success with its hybrid Prius and has now launched a plug-in Prius Prime for the 2020 model year.

Value, company health, and a strong dividend all come together to make this an excellent portfolio addition, especially for investors who lack an automotive component. The current dividend of $2.19 per share results in a yield of 2.63% at today’s price.

Key Data:

  • 1 Year Price Growth: 93%
  • YTD Price Growth: 58%
  • 3 Month Price Growth: 42%

All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.

 

The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

 

The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

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