Since the start of 2023, Visa (NYSE:V) stock has gained by around 13.33%, besting the  S&P 500 Index (NYSEARCA:SPY), which is up by around 12.8% year-to-date. After making strong gains throughout the year, stocks not have great results ahead.

A similar scenario could play out for V stock if rising rates start affecting the economy and weigh on Visa’s operating performance in the immediate term. Yet even if this plays out, you may not want to skip on this stock completely. In fact, additional near-term volatility could work in your favor.

V Stock and ‘Higher for Longer’ Risk

While there was one company-specific event (a complex share exchange offer) that played a role in Visa’s stock price decline last month, the larger factor was the latest developments regarding interest rate policy from the Federal Reserve.

With the central bank expected to keep interest rates “higher for longer,” investors have started to re-rate stocks, V stock included, accordingly.

Although the market has bounced back somewhat in more recent trading days, that’s not to say “higher for longer” has been fully digested.

Concerns keep growing that “higher for longer” is decreasing the chances of the Fed’s desired “soft landing,” and increasing the chances of a full-on recession.

Visa has managed to report strong results in recent quarters, thanks to consumer spending staying resilient despite rising interest rates, high interest rates, and the resultant economic slowdown.

However, not only is it very questionable whether consumer spending will stay robust going into 2024. Consumer resilience may already be fading.

Although Visa has delivered earnings beats in each of the last four fiscal quarters, there may be a greater chance for disappointment with results for the September quarter, set to be released later this month.

The Silver Lining

If Visa disappoints the market with its upcoming quarterly results, or releases inauspicious updates to guidance, fair weather investors could use such a development as an excuse to make an exit from V stock.

Further developments on interest rates/other macro factors could weigh further on shares from here.

Again though, this may prove advantageous, if you’ve been looking to enter or add to a position. A downturn may be growing increasingly likely. However, it will not last indefinitely.

Within a few quarters, as economic conditions normalize, Visa’s growth could get back on track. From there, favorable trends point to Visa meeting or even beating long-term sell-side forecasts.

For instance, the continued shift worldwide from using cash to using digital payment methods for consumer transactions. This, plus the company’s move into area like fintech, point to continued double-digit earnings growth.

At the very least, this should be sufficient for the stock to maintain an earnings multiple in the mid-to-high 20s range.

Once interest rates start coming down a year or so from now, the opportunity for multiple expansion could emerge again as well. To top things off, there’s another factor that may result in even stronger long-term total returns.

Bottom Line: Keep This Blue-Chip on Your Radar

It goes without saying that V is not a high-yielding stock. Based on its current rate of payout, shares have a forward dividend annual dividend yield of just 0.77%.

However, Visa has raised its dividend fourteen years in a row. Over the past five years, this payout has increased by an average of 16.89%.

For long-term investors, these steady, rising payouts, coupled with earnings growth, point to Visa (up nearly fivefold over the past decade) remaining a top-performing mega-cap stock in the years to come.

As the chance of additional turbulence in the short-term remains high, you may not want to necessarily dive into a position. Still, feel free to keep this blue-chip on your radar. Following another round of weakness, shares could be at a “can’t miss” long-term entry point.

V stock earns a B rating in Portfolio Grader.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.