Dividend Increase: V

ID-100130817-300x200 Dividend Increase: V

Visa Inc. (V) just declared $0.21 quarterly dividend. This is an increase of 7.7% from $0.195.

I own 17 shares, so this will increase my annual dividend income by $1.02 to a total of $4,805.82

I updated both my Passive Income page as well as my Portfolio page to reflect the changes.

 

My Thoughts:

I was actually disappointed with this dividend increase from Visa. Visa has a 5-year dividend growth rate of 22.8% and the last dividend increase was 18.18%. I was expecting something between 15-20% increase this time around.

Even though the increase is much higher than inflation, I did leave kinda disappointed with the increase. Never the less, the company continues to grow and CFRA gives a 3-year projected earnings growth of 18%. So I am still very optimistic that the dividend growth will return in the double dight in the near future.

I find that Visa is expensive with a current PE of 31. Even though growth for the company is looking great, I give this stock a HOLD recommendation.

When I see a significant drop in price, I will be backing up the truck with this stock. This is a forever company in my book.

Screen-Shot-2018-02-13-at-8.51.48-PM Dividend Increase: V

Source: fastgraphs.com

 

Thanks for reading, and don’t forget to follow me for great investment ideas.

 

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Comments

  1. Hey, great work with your dividend income you are crushing it. This increase was just a bonus to tell you the truth is what I think! Visa has historically increased December. So in 2017 for December’s dividend they increased 18%, then the next dividend March 18 the payment will be 7% higher. Visa may raise again in December 2018 but we will see how results play out. They certainty have a lower payout ratio which should support another increase. This a golden stock ever since it went public.

    • Hi Nathan, Thank you for reading and commenting on the site. I did not realize that this dividend increase was right after the 18.2% in October of last year. I agree with you that there might be another increase later in the year. I am so excited about that and looking forward to their announcement. Thanks Nathan for your input.

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