Verdict – MA Stock or V Stock
Most likely, investors will be happy with either MA stock or V stock in 2014. Consumer spending might not be on fire, but it continues to pick up. International spending, especially in Europe, could accelerate next year, too.
That should help MasterCard stock and Visa stock continue their winning ways. But if you had to pick one, do you go with massively outperforming MA stock or blue-chip V stock, a component of the Dow Jones Industrial Average?
As it has for years now, MA stock looks to have the edge. Shares aren’t cheap, but they aren’t particularly overpriced either. Sentiment is especially bullish on MasterCard stock as a top pick among credit card companies, and the dividend hike and share repurchase program will help boost total returns, too.
Then there’s the stock split. Shares of a company almost always get a lift from a stock split, even though nothing fundamental has changed. But in this case, the lift could last a while for MA stock. For better or worse, plenty of individual investors would probably love to chase those hot returns in MasterCard stock — but can’t swing the $800-plus share price.
MA stock has more momentum than V stock, and the stock split should only add to it. For that reason and more, MasterCard stock is a buy over Visa stock for 2014.
As of this writing, Dan Burrows did not hold a position in any of the aforementioned securities.