Investing in the stock market has been popular for a long time. People are doing it more often these days. Why wouldn’t they? The income it promises to yield without much work is attractive. You have to buy stocks or small shares in a company first. Then, every year, the company will give you a dividend or a part of its profits.
Depending on how the company operates and the number of stocks you have bought, you will receive money. While this sounds easy, when investing, there are many strategic decisions that you must take.
Moreover, a wrong investment can lead to you losing all your money. For example, when the company incurs a loss or has to shut down. This is called direct stock purchase or dividend reinvestment plan. There are indirect means of investing in stocks, like through a brokerage account.
Further, when you invest in mutual funds, you are paying a company to invest in stocks with your money indirectly. And in this article, we will tell you about directly investing or buying shares. We will also guide you through the three best stocks that you should look at for a safe investment and higher yield.
Uber Technologies Inc | NYSE: UBER
You must be very familiar with the company Uber. It made a fortune providing taxi services to people. They can easily do so by booking through the Uber app. The idea was brilliant, really, given how erratic city taxies generally are.
The company minimizes the uncertainty of getting a cab when you need one. Their drivers are available 24 hours. Moreover, they will drive you to anywhere with a no-refusal policy. Also, Uber is a brand that ensures safety for women who would be scared to ride in taxis at night. All their drivers and cars are registered and connected through a digital database.
Recently Uber has expanded to include a food delivery service as well. This way, you can have food from your favorite place. They also have a bicycle-sharing service. Currently, Uber’s net worth is 76 billion. It is predicted that the net worth would be 218 billion by 2025.
Moreover, Uber has a lot of launches geared up. Their stock value will likely increase over the years. It has the potential to be an excellent investment in the coming years. But you must be patient when investing in Uber as it is a startup.
There is money to be made, no doubt. However, do not be greedy and buy a lot of shares. Buy small and purchase more only when you get a yield. The future of this company so far looks promising and worth investing your money.
EPAM Systems Inc | NYSE: EPAM
A multinational company that provides services to other companies for any software engineering or IT consultancy based requirements. They have been helping many companies make the transition to software-based services, and companies also outsource work like attending to IT departments to EPAM.
Epam Systems Inc. covers digital strategy, consumer support, and designs the whole IT interface for companies. They are responsible for creating applications for companies, after running tests, and once it is functional, they do the maintenance and updates. Once a company has hired them, they will not have to worry about the software aspect of their business any longer.
Since application and software technology is most in demand, the company has been growing ever since its foundation. The company has been consistent in improving its performance over the years.
Also, it has a growth score rate of A or B. since their profits have seemed momentous change, investing in their stocks can bring you good dividends. The EPS growth rate is 25.5%. Predictions say it will be another 20.8% given the average is 9.8%.
Even their cash flow growth is way above average at 39%. Moreover, the company has outperformed all statistics this year. So, buying stocks in this company should be a great move. Further, such an investment will yield short and long term benefits.
Vanda Pharmaceuticals Inc. | NASDAQ: VNDA
Vanda Pharmaceuticals is a biopharmaceutical company. It specializes in developing and commercializing medicines that are for the central nervous system. They are the manufacturers of HETLIOZ. This drug treats sleep-wake disorder. Also, they produce Fanapt – a type of prescription medication for treating schizophrenia.
Furthermore, psychiatric unites widely choose their products for the treatment of their patients. Patients who are suffering from such nervous disorders. While you may not have heard of this company, in the specialized circle, they hold a reputation – for continually developing medicines that cater to central nervous system problems.
Since their products are essential, their stocks trade around $15. Also, biotech investments are high risk. However, this company has and will be consistently developing new products that will help to treat serious ailments.
Moreover, their sales were up 2% and almost 238% since 2015. They had a bump in the road. However, the company reported a profit of 3 million. As the demand for HETLIOZ increases and new drugs are being developed, their shares may not yield huge dividends. Still, they are consistent and will ensure a steady income over the years.
The decision is ultimately yours as there are hundreds of well-performing stocks – research extensively before buying the shares. Try to dig up the statistics of how the company is performing, the profit turn out, what experts are predicting, etc. before you buy their stocks.
Also, look at the latest final report. By doing so, you will see if they have been growing steadily. At times, a fast-growing company can go down fast as well. Also, be careful of start-ups as they are volatile.