Investing in Siemens
Investing in Siemens may be one of your best alternatives in the stock market, but to corroborate it first we recommend you to read this post and learn everything about this company: its strengths, weaknesses, the price of Siemens shares and even how you can safely buy its shares.
What is Siemens?
Siemens is a German multinational company with subsidiaries in Munich and Berlin. It was founded in 1847 and to date has more than 190 locations worldwide.
The company is dedicated to the manufacture of products for 4 specific areas: energy, health, industrial sector and infrastructures. It has now entered sectors such as telecommunications, automation and transportation.
Among the different activities they perform, we have: production of metallurgy equipment, technologies for construction, lighting, automation, development within fossil and renewable energies, among others. In addition, in the health sector, they work with medical imaging, hospital CRM, hearing aids, etc.
The company has partnered with large companies in different sectors, the main ones being: Valeo, Red Bull and CapGemini. With these companies it has carried out large projects in the energy and industrial sectors and has also participated in sporting events.
Siemens is currently working on its Vision 2020+ program. This system seeks to offer full automation of business processes for different business areas in order to achieve ”business freedom”.
Siemens has had organic revenue growth despite the economic imbalance caused by the coronavirus. Just for the end of September 2020, Siemens’ share price was 4.2 billion euros, making the fiscal close of its business.
It is estimated that by 2021 they will be able to improve their profit margins and reestablish their current revenues by increasing them considerably. On the other hand, Siemens is integrated in the Deutsche Boerse AG stock exchange in Germany. It is also part of indexes such as DAX 30 of German origin, Dow Jones EuroStoxx 50, and Dow Jones Stoxx 50.
Siemens is included in the Nasdaq stock index under the acronym GCTAF and SMMNY. Although one of the company’s divisions, Siemens Energy, recently exited the stock market, the Siemens Gamesa share has remained stable.
Buying Siemens shares: Advantages
- The Siemens share price is listed as one of the highest. As of today, Siemens shares are trading at 112.70 euros, which is beneficial for shareholders who decide to invest in the company.
- Siemens, a Blue Chip company. Blue Chip companies are those that have a solid and stable economy, visibility, higher performance and a high stock value such as Siemens. Certainly, this company possesses all of these characteristics.
- Dividends for shareholders. Siemens offers dividends to its shareholders at around 1% value for its shares. It is expected that in the future, as the company’s earnings increase, the value of its dividends will increase.
- Worldwide diversification. Over the course of 150 years, the multinational company has managed to participate in a large part of the world’s markets by including its variety of products and meeting the needs of its consumers. Therefore, by buying Siemens shares, we are acquiring profits from a stable and highly profitable company.
- Excellent economic model. Although its revenues declined despite COVID-19, Siemens has managed to stabilize and move forward with new business strategies in order not to lose its position. This also favors the current price of each Siemens stock.
Buying Siemens shares: Disadvantages
- High price of Siemens shares. We commented earlier that this was an advantage, but it also has its downside, and that is that the investment in Siemens stocks can be very high. In addition, there are companies in the same sector that offer lower prices.
- High-level competition. Siemens has robust competitors within the same sector for which it works such as: General Electric, 3M, Hitachi, Alstom, among others. This can affect the company’s economics and popularity.
How to buy Siemens shares
To know how to buy on Siemens successfully, it is necessary to use a secure broker such as eToro. This platform acts as an intermediary between the seller and the shareholder, allowing the transaction to be carried out quickly and reliably.
Below, we will show you how to trade Siemens step-by-step through eToro:
- Login to the eToro platform and register to be able to log in.
- Deposit the amount you are willing to invest (the minimum amount for eToro is $200).
- Search within the broker for Siemens.
- All the company’s stock market information will be displayed, including how much a Siemens share is worth in real time.
- Click on the ”Buy” option and choose the number of Siemens titles you want to purchase.
- Choose the quote of your preference. You can enter a custom amount or choose the proposal by market.
- Click on ”Invest”. Wait a few minutes to confirm the order and that’s it! You now have Siemens shares in your portfolio.
Before you think about investing in Siemens, it is important to:
- Study everything about the company, from its history, advantages, disadvantages, latest earnings, economic downturns, to its stock market data.
- Analyze the experiences of other users in buying Siemens shares. Check the result of your purchase, earnings and dividends.
- Get advice from stockbrokers and financial experts to find out if buying shares in Siemens is right for you.
- It constantly reviews the Siemens stock price and its up and down statistics to determine when it is the right time to buy or sell its stocks.