Smart investments have the potential to significantly impact individuals’ financial lives. Visa is an example of such an investment. While it may not be the most exciting stock available, it has consistently outperformed the S&P 500 over the past decade.
This trend has resulted in substantial financial gains for investors who chose to purchase Visa stock and were patient enough to hold onto it. As of the current assessment, Visa has achieved a compound annual growth rate of 18.6% since March 23, 2015. During the same period, the S&P 500’s compound annual growth rate was 12.6%.
For instance, an investor who had invested $25,000 in Visa stock on March 23, 2015, would find that their investment is now worth approximately $137,000, considering both price appreciation and reinvested dividend payments. Visa currently offers a modest annual dividend of $2.36 per share, resulting in a dividend yield of about 0.7% at the current share price.
A question frequently posed by investors is whether purchasing Visa stock is advisable at this point in time. Visa operates a vast payment network that processes transactions worth tens of billions of dollars daily. In its fiscal first quarter of 2025, which concluded on December 31, 2024, Visa reported a payment volume of $4.1 trillion across its network. This substantial transaction volume generated $9.5 billion in revenue and $5.1 billion in net income.
Visa’s business model is straightforward, stable, and highly profitable. Consequently, owning Visa stock has been a beneficial decision for over a decade. As such, it might be prudent for investors to consider this stock closely.
