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Buy this Blue Chip Bargain

Posted: 29 May 2019 11:14 AM PDT

There are a lot of ways to make money in the market. But even if you find that rare company that can move ten-fold and provide one of the best profits of your lifetime, that will take time. Most investors get impatient.

There are far more investors interested in companies like Amazon (AMZN) today, now that it's proven its profitability. But even if you invested in the company back when shares were far cheaper, chances are you wouldn't have taken the full ride. Instead, you would have cashed out and left a huge chunk of potential profits on the table.

Rather than try and find the next ten-fold winner, investors looking to buy great companies at bargain prices can often find such a few such opportunities per year. These blue-chip bargains can give investors a solid and growing dividend so that they're paid to wait. And even better, by buying when shares are oversold and sentiment is negative, there's a good chance to see some capital gains right away as well.

One such opportunity right now is forming in 3M (MMM). Back in April, shares dove 20 percent as the company announced a drop in earnings and sales. While some are starting to extrapolate the end of the company, some perspective is helpful.

For instance, 3M sells over 60,000 products across a variety of divisions. By getting rid of the lowest-selling or most unprofitable 10,000 products, the company could realize millions in savings while also improving its profit margin in total. If they sell off those products rather than shut them down entirely, they could even make some money while doing so!

With sentiment so negative and with shares so oversold right now, there's a good chance shares will trend higher in the coming months. And with a 3.5 percent dividend yield now, there's a nice income to be made on the side.

Even better, the company has paid a dividend consistently, and has managed to grow it over the years. Buying dividend growth companies after they've taken a dive is often a good way to get a better starting yield and get your wealth growing over time in a low-risk way.

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Posted: 29 May 2019 04:40 AM PDT

The headlines were brutal. St least some of them were. Gizmodo exclaimed, "Congratulations to Uber, the Worst Performing IPO in U.S. Stock Market History."

The story explained that trading had not gone as expected for the ride hailing service. Uber "finally debuted on the New York Stock Exchange today, in the middle of international trade uncertainty and following a massive, international strike by its own drivers, how'd it do?

According to University of Florida professor Jay Ritter, Uber's 7.62 percent decline since hitting the NYSE makes it "bigger than first day dollar losses of any prior IPO in the U.S."

In terms of percentage losses, Uber's dip doesn't even scratch the surface of the worst IPOs. But the staggering valuation of the company makes it, in raw scale, "among the top 10 IPOs ever" including companies outside the U.S., Ritter told Gizmodo in a phone interview.

That single digit decline resulted in an estimated $617 million paper losses.

Consider also that Uber's debut valuation of $76.5 billion was a considerable drop from the between $90 billion and $120 billion the company had been worth in some analysts estimation just a month earlier—one meant to stanch the forthcoming bleeding that had begun with competitor Lyft's bellyflop IPO.

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