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Tesla Motors Inc (TSLA) – Dividends or Growth: What Is in Your Portfolio?

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Every company is in a different stage. Some will not grow a whole lot more, and others are just getting started. Everyone’s investment objective is different, but between growth and dividends, most people can find a happy median. There are a couple companies that I expect to grow tremendously for years to come, and one that should become a haven for dividend investors.

Growth

What if I told you three months ago that you could double your money by investing in one company for just one quarter? Most people would have thought penny stocks, or some extremely risky investment strategy. Some people might have even thought “Ponzy scheme!”

The truth of the matter is, Tesla Motors Inc (NASDAQ:TSLA) has done just that. Its stock has doubled in just three months. While its not a ponzy scheme, it seems positioned to continue growth over the next several years.

Tesla Motors Inc (NASDAQ:TSLA)Tesla Motors Inc (NASDAQ:TSLA) isn’t alone. Although Amazon.com, Inc. (NASDAQ:AMZN) may not have doubled in the past three months, it is just entering a new $850 billion market in the U.S. AmazonFresh is the company’s produce segment that is being unraveled in parts of Los Angeles and the San Francisco Bay area.

Dividends

Tesla Motors Inc (NASDAQ:TSLA) and Amazon.com, Inc. (NASDAQ:AMZN) won’t be issuing dividends anytime soon, but there is one company that will be seriously boosting their payouts to shareholders. Apple Inc. (NASDAQ:AAPL) may not be the first company investors think of when they think dividends, but that may be changing. The good news for investors? Between these three companies, most of your needs should be met.

Durable competitive advantage

All three companies have one. Warren Buffet would never invest in a company without a durable competitive advantage, but he would be proud of these three companies. Tesla Motors Inc (NASDAQ:TSLA) is revolutionizing the way people think about cars. It seems that Tesla is years ahead of any competitors, and is finally selling a significant number of cars. Amazon.com, Inc. (NASDAQ:AMZN) has completely (and continues to) changed the way people view retail. You don’t even have to go to the store to buy groceries anymore thanks to them. Apple Inc. (NASDAQ:AAPL) has a name that no one can miss, enough cash to buy most anything it wants, and a following of customers unlike any other company in the world.

Potential

So, why do I pick these companies and expect them to do what I say? Simple. The ground work is there.

It was announced on Tuesday that Tesla Motors Inc (NASDAQ:TSLA) would take Oracle Corporation (NASDAQ:ORCL)‘s place on the Nasdaq 100 Stock Index, but that is minimal in comparison to its upside. The company is expecting gross margins of 25% by the second half of the fiscal year, which would be higher than that of BMW. It also expects to bring a $30,000 vehicle to the market by the end of 2016. The company is on track to sell 20,000 vehicles this year, but if they can meet this goal of a cheaper vehicle, some expect the company to sell upwards of 200,000 vehicles per year. By the end of the year, Tesla expects to have charging stations nation-wide, and also cut charging times in half.

Amazon.com, Inc. (NASDAQ:AMZN) is not cheap, but has enough potential moving forward that it might not be too expensive to scare away growth investors. The two biggest growth factors for Amazon right now are Amazon Prime and AmazonFresh.

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