Introduction
In this article, we review Visa (NYSE:V) shares specifically from the perspective of a dividend investor. So far in 2021 year-to-date, Visa shares have fallen by approx. 1%, while its close peer
Visa Stock: Is It A Dividend Stock To Watch?
Summary
- Visa shares currently pay a dividend of $0.32 per quarter, or $1.28 annualized, equivalent to a 0.6% Dividend Yield.
- Visa's Dividend Yield will stay low because Visa is only distributing 20-25% of its EPS as dividends, spending the rest on buybacks.
- In our opinion, Visa shares are not suitable for dividend investors purely focused on income, but may attract those who also consider capital gains.
- COVID-19 brings short-term pain but long-term gains to Visa’s P&L, volume is already higher and we expect a strong recovery in 2021.
- With shares at $208.77, we expect a total return of 48% (12.1% annualized) by 2024, mostly from share price rising to $320.
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Analyst’s Disclosure:I am/we are long V, MA, PYPL. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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