Visa Inc. (V) is a leading payments technology company that facilitates digital payments among consumers, merchants, financial institutions, strategic partners, businesses, and…
government entities. Additionally, it provides card products, platforms, and value-added services. The company offers products and services under the Visa, Visa Electron, Interlink, and VPAY brands.
Warren Buffett’s Berkshire Hathaway (BRK.B) owns nearly 8.3 million shares of V for a market value of $1.8 billion. The stock represents about 0.5% of Berkshire Hathaway’s portfolio.
Last month, V posted better-than-expected earnings for its fiscal third quarter. The company has benefited from a significant global shift from cash to digital payments. Moreover, as consumers return to their pre-pandemic traveling habits, the company’s cross-border volume improved 40% year-over-year.
Al Kelly, Chairman and CEO of Visa, said, “Consumers are back on the road, visiting various corners of the world, resulting in cross-border travel volume surpassing 2019 levels for the first time since the pandemic began in early 2020.”
V pays $1.50 as dividends annually, yielding 0.71% on the current price. The company’s dividends have increased at a CAGR of 14.6% over the past three years and 17.9% over the past five years. The company’s dividend has grown for 13 consecutive years.
In May, V partnered with Fundbox, an embedded working capital platform for small businesses, to strengthen the latter’s platform with new digital payment capabilities. Under this collaboration, Fundbox Flex Visa Debit Card will be launched, issued by Pathward, N.A.
In addition, the companies will work together in the coming months to introduce a range of new payment products, including a Buy Now, Pay Later (BNPL) solution, and a push-to-card transfer option for instant fund disbursement through Visa Direct. This partnership is expected to extend the company’s customer reach and boost its revenues.
V’s shares have gained 4% over the past month to close the last trading session at $211.73.
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Here is what could influence V’s performance in the upcoming months:
Robust Financials
V’s net revenues increased 19% year-over-year to $7.30 billion in the fiscal third quarter ended June 30, 2022. Its operating income grew…
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