Yahoo Finance·2026-01-21 11:05Core Insights - Dividend growth is essential for dividend-focused investors, as inflation diminishes the dollar's value over time, making it crucial for dividend payments to increase to maintain purchasing power [1] Visa - Visa is a global payment processor that facilitates transactions between buyers and sellers, processing 257.5 billion transactions in fiscal 2025, representing a 10% year-over-year increase [2] - The shift from cash to card-based payments and the growth of e-commerce are expected to sustain Visa's business growth for years [3] - Visa's dividend has surged by 375% over the past decade, appealing to investors who prioritize future income over immediate returns [3] - The current price-to-earnings (P/E) ratio of 32 is slightly below its five-year average of 33, indicating a reasonable valuation for long-term investors [4] - A $2,000 investment in Visa would allow the purchase of approximately six shares [4] Realty Income - Realty Income represents a slower dividend growth option, with a 40% increase in dividends over the past decade and a compound annual growth rate of 4.2% over three decades, slightly outpacing inflation [6] - Realty Income offers a relatively high dividend yield of 5.3%, making it attractive for investors seeking income from their portfolios [7] - A $2,000 investment in Realty Income would enable the purchase of about 32 shares [7] Investment Preferences - Some investors favor rapidly growing dividend stocks like Visa, while others prefer the steady growth of dividends offered by Realty Income, highlighting differing investment strategies [8]