Money and Finance
Visa Inc.: Cash Is King, But Credit's Good Too
Visa Inc. (NYSE:V) is a wonderful company that few can argue about its quality as a company. The business model is excellent. Just charge merchants a percentage of every transaction with no liability for the customers' ability to pay. It's essentially a financial toll road that has excellent growth prospects moving forward.
I initiated a position in the company in August 2013 and have been more than pleased with the results as they are the 5th best performer in my portfolio as judged by internal rate of return. In that time I've received a dividend return of 1.60% and share price appreciation of 48.05%. That's good for a total return of 49.65% with an internal rate of return of 22.49%. As a dividend growth investor the even better news is that the dividend has been increased by 69.70% since I initiated the position.
Visa is a Dividend Challenger with 8 consecutive years of dividend growth. At a price of $71.56 the current yield is 0.78%.
However, that's what it's done for me in the past and has no bearing on the future. Is there any value in the shares at the current prices?
Continue reading the article on Seeking Alpha.
You can check out more of my stock and valuation analyses on my Stock Analysis page.
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Money and Finance