Dow Dividend Growth Stock: Visa Hits New Highs, Raising Dividend; A Screaming Buy in November
Sunday, Nov 3, 2024 5:42 am ET
V --
Visa (NYSE: V) has just reported record results for its fiscal fourth quarter and full year, and it's no surprise that the company has raised its dividend to an all-time high. With a strong balance sheet, diversified revenue streams, and a history of consistent growth, Visa is a screaming buy for income-oriented investors in November.
Visa's total payments volume (TPV) grew by 8% year-over-year (YOY) in fiscal 2024, driven by a 10% increase in processed transactions and a 15% rise in cross-border volume. Despite macroeconomic challenges, Visa's international business helped compensate for slight changes in the domestic market, demonstrating the power of its network effects. The company's value-added services revenue also rose by 22% in fiscal 2024, highlighting its ability to innovate and adapt to evolving consumer preferences.
Visa's strong financial performance has enabled it to maintain high operating margins and return significant capital to shareholders. In fiscal 2024, the company returned $20.9 billion to shareholders, including $16.71 billion in stock repurchases and $4.22 billion in dividends. Visa's dividend was raised by 13% to $0.59 per share, marking an all-time high.
Visa's ability to grow even in challenging macroeconomic conditions is a testament to its diversified revenue streams, network effects, and strong balance sheet. Despite inflation, higher interest rates, and economic slowdowns, Visa's TPV, processed transactions, and cross-border volume all increased in fiscal 2024. This growth was driven by its international business, which helped compensate for a slight change in its domestic business. Moreover, Visa's network effects, which increase in value as more users join, further strengthen its position.
Visa's strategic partnerships and commercial deals also play a significant role in its dividend sustainability. The company's fiscal 2024 saw a 22% increase in value-added services revenue, driven by over 650 commercial partnerships, up 30% from the previous year. These deals help Visa target digital-first payment experiences, streamline checkout experiences, and process account-to-account payments. Moreover, Visa's ability to renew its largest clients in multiple regions and extend partnerships with U.S. Bank and USAA demonstrates its strong network effects and the value it brings to its clients.
Visa's strong balance sheet, with cash and cash equivalents of $11.98 billion, investment securities of $3.2 billion, and low net-debt position, enables it to pass along excess profits to shareholders through its capital return program. This program, which includes stock repurchases and dividends, has returned $20.9 billion to shareholders in fiscal 2024. Visa's ability to generate high margins (67%) and grow its top line despite macroeconomic challenges allows it to maintain this robust capital return program, supporting its dividend growth and making it an attractive buy in November.
In conclusion, Visa's record results and all-time high dividend make it a compelling investment opportunity for income-oriented investors. With a strong balance sheet, diversified revenue streams, network effects, and a history of consistent growth, Visa is well-positioned to continue delivering value to shareholders. As the company continues to adapt to changing consumer behaviors and expand its value-added services, it remains a screaming buy in November.
Visa's total payments volume (TPV) grew by 8% year-over-year (YOY) in fiscal 2024, driven by a 10% increase in processed transactions and a 15% rise in cross-border volume. Despite macroeconomic challenges, Visa's international business helped compensate for slight changes in the domestic market, demonstrating the power of its network effects. The company's value-added services revenue also rose by 22% in fiscal 2024, highlighting its ability to innovate and adapt to evolving consumer preferences.
Visa's strong financial performance has enabled it to maintain high operating margins and return significant capital to shareholders. In fiscal 2024, the company returned $20.9 billion to shareholders, including $16.71 billion in stock repurchases and $4.22 billion in dividends. Visa's dividend was raised by 13% to $0.59 per share, marking an all-time high.
Visa's ability to grow even in challenging macroeconomic conditions is a testament to its diversified revenue streams, network effects, and strong balance sheet. Despite inflation, higher interest rates, and economic slowdowns, Visa's TPV, processed transactions, and cross-border volume all increased in fiscal 2024. This growth was driven by its international business, which helped compensate for a slight change in its domestic business. Moreover, Visa's network effects, which increase in value as more users join, further strengthen its position.
Visa's strategic partnerships and commercial deals also play a significant role in its dividend sustainability. The company's fiscal 2024 saw a 22% increase in value-added services revenue, driven by over 650 commercial partnerships, up 30% from the previous year. These deals help Visa target digital-first payment experiences, streamline checkout experiences, and process account-to-account payments. Moreover, Visa's ability to renew its largest clients in multiple regions and extend partnerships with U.S. Bank and USAA demonstrates its strong network effects and the value it brings to its clients.
Visa's strong balance sheet, with cash and cash equivalents of $11.98 billion, investment securities of $3.2 billion, and low net-debt position, enables it to pass along excess profits to shareholders through its capital return program. This program, which includes stock repurchases and dividends, has returned $20.9 billion to shareholders in fiscal 2024. Visa's ability to generate high margins (67%) and grow its top line despite macroeconomic challenges allows it to maintain this robust capital return program, supporting its dividend growth and making it an attractive buy in November.
In conclusion, Visa's record results and all-time high dividend make it a compelling investment opportunity for income-oriented investors. With a strong balance sheet, diversified revenue streams, network effects, and a history of consistent growth, Visa is well-positioned to continue delivering value to shareholders. As the company continues to adapt to changing consumer behaviors and expand its value-added services, it remains a screaming buy in November.