Investing in the stock market is a good strategy to gradually increase your wealth. Forget about high-risk penny stocks and get-rich-quick schemes. The greatest method to build a profitable investing portfolio is to invest in shares of great firms that are available at fair prices. Hold onto such equities for a minimum of five years, and then watch the gains mount.
To get started, you don’t need to be wealthy. For instance, if you can only save $2,170 that won’t be used to pay bills in the upcoming years, you could buy 10 shares each of Coinbase Global (COIN -1.72%) and Universal Display (OLED -0.63%). And even if you just had a tenth of that amount available, you may start with one share of each stock.
These two stocks have recently fallen from much higher share prices, opening a buying window for savvy investors. And they are both excellent companies with stellar long-term growth prospects.
The majority of today’s mid-range and high-end smartphones use organic light-emitting diode (OLED) screens, which were developed by Universal Display. The business collects royalties from patent licenses and resells the components used to generate OLED screens. Payments are often dependent on the total area of OLED panels that the company’s clients produce and sell to phone manufacturers and other device manufacturers.
These days, the same technology is being used in much larger TV screens, and one big-screen TV with a sizable OLED panel contributes as much to Universal Display’s revenue streams as hundreds of smaller smartphone screens do. Flexible, attractive, and energy-efficient OLED screens are also being used by automakers in their newest models. Oh, and to develop and market OLED-based lighting panels, Universal Display is collaborating with a number of consumer lighting experts. As a replacement for small-molecule and polymer OLED components, the company is also getting ready to introduce a more comprehensive line of phosphorescent OLED solutions.
Therefore, over the long term, Universal Display offers great shareholder value. Even in the uncertain market situation of today, the company is experiencing rising sales and producing higher-than-ever cash earnings. However, the stock price dropped by 40% during the last year and is currently trading nearer to its 52-week lows than its annual highs. And don’t forget about the respectable and quickly increasing dividend payouts from Universal Display, which currently amount to a 1% yield.
