Technology-driven payment processor, Visa (V), recently announced another big dividend hike (15.6%) and a massive $25B share repurchase program. And this industry-leading company is benefiting form the enormous digital payments secular trend. It also has one of the most impressive net profit margins you’re ever going to see. In this report, we review the business, the market opportunity, the valuation, the dividend and the risks. We conclude with our strong opinion on investing.
Visa Earnings Note
A Dividend Growth Monster, On Sale
When investors think of “big dividends” their minds often gravitate to stocks with the highest dividend yields. However, “yield on cost” can be an extremely important metric for long-term income-focused investors because it can reveal massive dividend opportunities flying under the radar. For example, the attractive undervalued dividend stock we review in this article doesn’t have the biggest current yield, but if you look backwards and forwards, the yield on cost is truly massive and it has the trajectory to continue growing dramatically larger.