Thursday, February 2, 2017

Should You Buy Visa Inc. Ahead Of Earnings?

dividend growth investing, stock analysis, minimum acceptable rate of return
Visa, Inc. (V) Dividend Stock Analysis 2017
Visa, Inc. (NYSE:V) has one of the best business models out there. Unlike some of their competitors they have no risk of default from the consumers that use the Visa branded cards. Rather, they take a small percentage of every transaction that runs across their network.
The business model has served them well over time and Visa is able to generate plenty of excess cash. Even better is that Visa's capital expenses are essentially the same whether they add 10 new merchants or 10,000 to their network. The cost to Visa doesn't really change meaning almost every dollar that they generate flows straight to the bottom line.
Let's take a deeper look at Visa the business to see what makes it such a great company and then look to see if there's a 1-foot bar to step over or if you're having to jump over a 10-foot bar with an investment in Visa.
Continue reading the article on Seeking Alpha.

dividend stock analysis, DIY, value investing, long term investing

1 comment:

  1. I have actually owned V since the IPO and its been an amazing return (including splits!). At last check their dividend payout ratio was only about 20% so it would be great if they increased their dividend moving forward.
    Visit me at TheDividendLife.com

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