Should You Buy Visa While It's Below $320?

Company Overview - Visa operates as a payment processing company, sharing a duopoly with Mastercard, and does not own the cards or stores but processes transactions for a fee [2] - In fiscal 2024, Visa processed 233.8 billion transactions, marking a 10% increase from the previous year, resulting in a revenue of $35.9 billion and adjusted earnings of $10.05 per share, up 15% year over year [3][4] Growth Potential - The company is expected to continue expanding as card-based payments increasingly replace cash, supported by the growth of online shopping and its strong capabilities in data safety against cyber threats [4] Investment Considerations - Visa's stock is trading near its all-time high, and while it may not appeal to deep-value investors or those seeking high yields, it may attract dividend growth investors due to its 16 consecutive years of annual dividend increases and a 10-year annualized growth rate of 17% [5][6] - The current dividend yield is 0.75%, and the stock appears fairly valued with price-to-sales and price-to-earnings ratios slightly below their five-year averages, indicating a reasonable price for dividend growth investors [7][8]