Visa Incorporated (V) announced a regular quarterly dividend of $0.165, an 18 percent increase from the prior rate of $0.14 per share. The dividend will be paid at the new higher rate on December 6, 2016, to shareholders of record at close of business on November 18, 2016. Visa Inc. is currently priced at $81.58.
Listed in the table below are the quarterly dividend payments since 2010. Our analysis of Visa Inc. as a Top 100 Dividend Stock candidate is listed below;
Analysis of Visa Inc. is based upon our five key criteria for the Top 100 list, which include;
|Dividend Growth (3-6 year avg)||25.4%||59|
|S&P Financial Rating||A++||40|
|% Yield||3 Year Div. Growth Rate||6 Year Div. Growth Rate||BV 2016||P/BV Ratio||10 yr P/BV Low||10 yr P/BV High||5 yr max Yield %||5 yr lowest Yield %|
- Visa’s dividend yield is below the average of the S&P 500 Index and is trading below its average historical dividend yield.
- Visa maintains a 3 year dividend growth rate of 21.4%.
- Visa has paid out a dividend consecutively for the past 8 years.
- Visa is trading at a high forward P/E ratio and at a high price/book value (P/BV) ratio. From a relative valuation perspective based upon P/BV, Visa is overvalued.
- Visa maintains a credit rating of A++. This is investment grade, a positive.
- Visa maintains a beta of 0.95, lower than the average company.
Based upon its low dividend yield and high P/E ratio, Visa Inc. does not qualify as one of our Top 100 Dividend Stocks.
Visa Inc. Dividend Yield Chart (Click to enlarge)
Chart Explanation: Dividend growth stocks may be viewed favorably when the current yield is above historical readings for the past 5 years.
Further information on dividend investing and evaluating dividend growth candidates can be found at http://seekingalpha.com/author/timothy-mcintosh/articles