+ Watch V
on My Watchlist
Visa operates a global electronic payments network, allowing customers to use credit cards instead of cash.
If I had to pick a single stock to hold in my portfolio over the long term, it would be Visa. The reason is due to them owning the dominant online transaction processing services which continue to grow and grow, in addition to their entrenched infrastructure in traditional payment processing. But my strategy in owning Visa is focused entirely on their electronic payment processing platforms. We all know ecommerce growth is gong to continue for a long time and Visa is the dominant player in processing all those billions and billions of transactions. I started off in the '90s buying Authorize.net (ANET). They got bought out by Cybersource (CYBS), which in turn got bought by Visa (V). In the process, I have made a mountain of money on a percentage basis (sadly I didn't start out with a lot, so I didn't get rich off it). I continue to hold Visa and continue to watch their chart make a nearly straight line up and to the right year after year after year. Just look at their chart for the past 7 years -- you'll be hard pressed to find another company with such consistent returns.
Great margins, great ROE and ROA, little or no debt, no credit risk, earnings adjust automatically to inflation, regular share buybacks, long growth runway in the 80+% of transactions still in cash. What's not to love?
Visa is critical (along with MA and AXP) to making the world a cashless society. Big growth ahead.
I do not own shares in this stock.
I expect at least a point a week from this stock, for the next five years.
As its description within Yahoo! Finance indicates:Visa Inc., a payments technology company, operates as a retail electronic payments network worldwide.Although there are a few similar companies in the industry; Visa only has one main competitor (MasterCard). Visa holds a large market share and works to remain competitive within its industry through continuous innovations in their payment processing technology systems. Stock price has appreciated over 15% within the last year. The company started paying dividends in 2008 and is currently at 0.80% yield.
still making good business
Profitability and growth potential.
JUST KEEPS ON GOING
owns everything retail and online, why not buy this stock?
Less bullish on V compared to MA due to 1) its larger size and greater market share and 2) bigger focus on the slower-growth U.S. market, but I still think we will see strong growth in the e-payments industry for a long time, and V is well-positioned to benefit for many of the same reasons as MA.
Dividends500 tracks the 200 strongest dividends in the S&P 500. To qualify as a strong dividend, the company must meet two simple requirements:- A payout ratio below 50%- An increasing dividend from the prior yearBecause there are more than 200 dividend paying companies in the S&P 500 that meet these requirements, the qualifying companies with the largest dividend yields were chosen. Dividends500 intends to test this FactSet article, which highlights these strong dividend paying companies and their outperformance versus the S&P 500 as a whole (Page 12).http://www.factset.com/websitefiles/PDFs/dividend/dividend_12.16.13If you have questions or see something you think is inaccurate feel free to let me know.
Despite incredible growth and growth potential, P/E ratio remains low.
Visa will continue to capitalize on the cash to credit card movement for decades. Mobile payments will further Visa's growth adoption as payments will ride the same Visa/Mastercard rails they do now. I don't see paypal or bitcoin disrupting either payment network not just now but well into the future. If there is any disruption coming we have not seen it yet and visa/mc could end up buying that or leveraging it anyway.
See MA above. I don't know, credit cards seem to be pretty cool ... Worldwide expansion -- Asia, Africa, Eastern Europe, Alabama (just kidding, Roll Tide).
It's been a constant up.
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