From Nasdaq: 2024-09-18 06:00:00

Visa (NYSE: V) has rallied almost 10% in the past month, reaching a new all-time high. The company generates revenue each time a debit or credit card is used, benefiting from the frequency and volume of transactions. Visa’s P/E ratio is 31, making it a valuable stock even after recent gains.

Visa’s earning potential continues to grow steadily, thanks to network effects and global reach. Unlike cyclical sectors dependent on economic cycles, Visa is resilient to downturns. Over the past 15 years, Visa has only experienced a maximum drawdown of 36%, showcasing its stability and consistent growth.

Visa is a dividend growth stock, allocating capital to dividends, stock buybacks, and business investments. With a payout ratio of just 21.5%, Visa has the flexibility to increase dividends significantly if desired. Despite its low yield of 0.7%, Visa’s long-term growth potential makes it an attractive investment for a variety of investors.

Visa is a well-valued stock at an all-time high, appealing to investors with different risk tolerances and time horizons. The company’s stability, growth potential, and strong financials make it a compelling choice for those looking for a reliable long-term investment. The Motley Fool Stock Advisor team has identified Visa as a strong candidate for investors, offering potential for impressive returns in the future.



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