From Yahoo Finance: 2025-05-09 05:04:00

Investors are curious about Visa (V), Mastercard (MA), and American Express (AXP) amidst global economic uncertainty. Despite challenges, all three are performing well according to TipRanks’ AI analysis, rating them as Outperform. Visa reported strong growth, with an impressive 9% net revenue increase in Q2.

Visa’s cross-border payment volume rose by 13% year-over-year, surpassing expectations. While trading at a premium to the market, Visa’s valuation remains reasonable for a long-term winner. With a solid dividend growth history and share buybacks, Visa returned $5.6 billion to shareholders in the last quarter.

Mastercard, like Visa, posted impressive results, generating net revenue of $7.3 billion in Q1. Trading at a premium to Visa and the market, Mastercard offers a slightly higher value. With a low yield of 0.51%, it’s also a dividend growth stock, repurchasing shares to boost shareholder returns.

American Express reported an 8% revenue increase in Q1, showing resilience amidst macro challenges. CEO Stephen J. Squeri noted healthy spending levels in key areas, reassuring investors. With a modest valuation and a higher dividend yield than Visa and Mastercard, American Express looks attractive.

All three companies are solid investment options, with Visa and American Express standing out. Visa’s lower valuation and higher yield make it appealing, while American Express offers a cheaper valuation, higher dividend yield, and aggressive share buybacks. Both are strong choices for investors.

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