Visa Inc. (NYSE:V) Announces Dividend Increase - $0.78 Per Share

Key Points

• Visa raised its quarterly dividend 16.4% to $0.78 per share, payable December 1 to shareholders of record November 10. The new annualized dividend is $3.12, yielding approximately 0.8%.
• Visa reported quarterly EPS of $3.48, beating estimates of $3.43, while revenue reached $12.14 billion and increased 13.2% year over year. Its strong profitability and 21.1% payout ratio indicate the dividend remains well covered.
• Analysts remain bullish, with Visa receiving an average “Buy” rating and an average price target of $437.42, above its reported trading price of $400.79.

Visa Inc. (NYSE:V - Get Free Report) declared a quarterly dividend on Tuesday, October 27th. Stockholders of record on Tuesday, November 10th will be given a dividend of $0.78 per share by the credit-card processor on Tuesday, December 1st. This represents a $3.12 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Tuesday, November 10th. This is a 16.4% increase from Visa's previous quarterly dividend of $0.67.

Visa has increased its dividend payment by an average of 0.1% annually over the last three years and has increased its dividend every year for the last 17 years. Visa has a dividend payout ratio of 21.1% indicating that its dividend is sufficiently covered by earnings. Analysts expect Visa to earn $14.99 per share next year, which means the company should continue to be able to cover its $2.68 annual dividend with an expected future payout ratio of 17.9%.

Visa Stock Performance

Shares of V stock traded down $1.07 on Wednesday, hitting $400.79. 6,973,961 shares of the stock were exchanged, compared to its average volume of 7,502,319. The firm's 50 day moving average is $378.75 and its two-hundred day moving average is $341.35. Visa has a one year low of $293.89 and a one year high of $414.60. The firm has a market capitalization of $715.18 billion, a PE ratio of 34.08, a P/E/G ratio of 1.92 and a beta of 0.77. The company has a current ratio of 0.99, a quick ratio of 0.99 and a debt-to-equity ratio of 0.60.

Visa (NYSE:V - Get Free Report) last announced its quarterly earnings data on Tuesday, October 27th. The credit-card processor reported $3.48 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.43 by $0.05. The business had revenue of $12.14 billion for the quarter, compared to analysts' expectations of $12.09 billion. Visa had a return on equity of 67.68% and a net margin of 50.78%. The firm's quarterly revenue was up 13.2% compared to the same quarter last year. During the same period in the previous year, the business posted $2.98 EPS. Sell-side analysts expect that Visa will post 13.22 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several analysts have recently issued reports on V shares. Loop Capital boosted their price target on shares of Visa from $387.00 to $404.00 and gave the company a "buy" rating in a research report on Wednesday, July 29th. Barclays raised their price objective on shares of Visa from $420.00 to $440.00 and gave the stock an "overweight" rating in a report on Wednesday. The Goldman Sachs Group lifted their price objective on shares of Visa from $420.00 to $438.00 and gave the company a "buy" rating in a research note on Wednesday, July 29th. Evercore set a $405.00 target price on shares of Visa in a report on Wednesday. Finally, Wells Fargo & Company restated an "overweight" rating and set a $432.00 target price (up from $412.00) on shares of Visa in a research report on Thursday, July 30th. Two research analysts have rated the stock with a Strong Buy rating and thirty-five have issued a Buy rating to the company's stock. According to MarketBeat, Visa currently has an average rating of "Buy" and an average target price of $437.42.

About Visa

Visa Inc NYSE: V is a global payments technology company that facilitates electronic payments between consumers, businesses, financial institutions and governments. Through its VisaNet network, the company authorizes, clears and settles transactions made with Visa-branded credit, debit and prepaid cards, while generally not issuing cards, extending credit or setting cardholder account terms.

Visa provides payment products and services for consumer, commercial and government payments, as well as digital commerce and money movement.

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