There you are scouring the internet in search of your next stock pick. You come across a stock by the name of SAP, and think it may be a good company to invest in. It’s been around for a long time and even has a consistent dividend payout. But what is SAP? What exactly do they do? And, are they worth your investment?
SAP, stands for Systems, Applications, and Products in data processing. This comes from the original German name Systemanalyse und Programmentwicklung which shows the roots of this company even more.
SAP started in 1972 with 5 former IBM employees with the initiative to provide a standard application software for real-time data processing.
In those early years, the 5 worked long hours including many long nights and weekends in order to grow the company to what it is today.
SAP, hasn’t stayed stagnant instead whenever technology changes they change at the same time. In 1974 they converted their RF system from the DOS operating system to OS over an eight-week period. And continue to stay up with technology until today.
In 1988 SAP transformed from a private company to a publicly traded one. After the first year, they were named “company of the year” by Manager Magazine.
Who Is SAP For?
A look at SAP’s products page makes you think that anyone could use at least one thing from them. In reality, they mostly work with mid to large companies in need of software for things such as inventory, analytics, cloud services, and way more.
They also work with small companies if they are in need of any of the same services. They offer so many services odds are that if you run a business they have something that can help you run that business better.
Can You Start The Next SAP?
They worked long and hard and didn’t give up. They treated their customers like gold because they knew that they are the backbone of the business, without customers, there is no business.
A business we start may never get to the same size as SAP, but we can still take those lessons and apply them to our business. If we do we are as close to guaranteed a success as we can be.
Should I Buy SAP?
After reading about this great company the next question should be, do I want to own a part of it? The answer depends on your investing strategy and your risk tolerance.
The company has consistently continued to grow and shows no real signs of slowing. However, their dividend yield is rather low and only paid out once a year, so if you’re hoping to gain passive income off of this stock you won’t get much.
However, if you’re investing for the long-term than it may be a good option as your money will grow. And, when it’s time to sell you should have a nice profit depending on how long you allow it to grow.
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