Where does Visa rank after its 18% announced dividend increase?

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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;

Date Quarterly Dividend
11/18/2016 0.165
8/17/2016 0.14
5/11/2016 0.14
2/17/2016 0.14
11/10/2015 0.14
8/12/2015 0.12
5/13/2015 0.12
2/11/2015 0.12
11/12/2014 0.12
8/13/2014 0.1
8/13/2014 0.1
5/14/2014 0.1
2/12/2014 0.1
11/13/2013 0.1
8/14/2013 0.083
5/15/2013 0.083
2/13/2013 0.083
11/14/2012 0.083
8/15/2012 0.055
5/16/2012 0.055
2/15/2012 0.055
11/16/2011 0.055
8/17/2011 0.037
5/18/2011 0.037
2/9/2011 0.037
11/17/2010 0.037
8/11/2010 0.031
5/12/2010 0.031
2/10/2010 0.031

Analysis of Visa Inc. is based upon our five key criteria for the Top 100 list, which include; 

Category Value Score
Dividend Yield 0.68% 401
Dividend Growth (3-6 year avg) 25.4% 59
Forward P/E 24.88 292
S&P Financial Rating A++ 40
Beta 0.95 100
Total Score   892

Additional Information;

% 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 %
0.68% 21.4% 29.4% 14.15 5.77 2.37 7.91 0.79% 0.63%

Final Analysis;

  • 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)

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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

One thought on “Where does Visa rank after its 18% announced dividend increase?

  1. I didn’t hear about the dividend increase, but I’ll take it. I have a small position with Visa, 25 shares. I’d like to get to 100 shares at some point. I like the stock as a buy and hold. I think China will help Visa grow revenues.

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