Blue-Chip Stocks to Buy: Visa (V)
Visa (V) certainly meets the standard of a household name, with this company at the center of the credit card industry for decades. But to many investors, Visa is simply too young to trust with blue-chip stocks status because it only went public in 2008.
That’s just plain silly. Visa is a $130 billion company that operates in 200 countries and has been at the forefront of payments processing since it was created in the mid-1970s. The company’s brand is synonymous with credit cards, Visa has deftly branched out into emerging markets and leadership continues to forge ahead with mobile payments to find even more growth in a digital age.
What’s not “blue-chip” about Visa, aside from its relatively short presence on the NYSE?
Visa pays an admittedly disappointing dividend of just 0.8%, however the company has paid distributions since shortly after its IPO and has almost quadrupled payments from 10.5 cents quarterly to 40 cents currently. Furthermore, the dividend payout ratio is a highly sustainable 21% of earnings — and with those earnings consistently growing, the dividend should grow, too.
The stock is stable, the business is entrenched and the dividend has big upside … sounds like another winner on the list of blue-chip stocks to buy.