Visa Inc. (NYSE:V) Declares $0.67 Quarterly Dividend

Key Points

• Visa declared a quarterly dividend of $0.67 per share, payable September 1 to shareholders of record on August 11. The company has raised its dividend for 17 consecutive years, with a payout ratio indicating ample earnings coverage.
• Visa reported fiscal third-quarter EPS of $3.32, beating estimates of $3.23, while revenue rose 14.4% year over year to $11.63 billion. Payments volume exceeded $4 trillion, reflecting resilient consumer and business spending.
• The company plans to cut approximately 2,600 jobs, or 7% of its workforce, as it seeks greater efficiency and investment capacity for artificial intelligence, stablecoins, Visa Direct and other money-movement services.

Visa Inc. (NYSE:V - Get Free Report) declared a quarterly dividend on Tuesday, July 28th. Stockholders of record on Tuesday, August 11th will be paid a dividend of 0.67 per share by the credit-card processor on Tuesday, September 1st. This represents a c) dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend is Tuesday, August 11th.

Visa has raised 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. Equities analysts expect Visa to earn $14.88 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 18.0%.

Visa Stock Performance

V stock traded up $3.05 on Wednesday, hitting $369.64. The company's stock had a trading volume of 2,154,014 shares, compared to its average volume of 7,946,860. The firm has a 50 day moving average of $338.90 and a two-hundred day moving average of $325.25. Visa has a 1 year low of $293.89 and a 1 year high of $371.16. The stock has a market cap of $663.05 billion, a price-to-earnings ratio of 32.15, a price-to-earnings-growth ratio of 1.93 and a beta of 0.75. The company has a current ratio of 1.09, a quick ratio of 1.09 and a debt-to-equity ratio of 0.64.

Visa (NYSE:V - Get Free Report) last issued its quarterly earnings data on Tuesday, July 28th. The credit-card processor reported $3.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.23 by $0.09. The company had revenue of $11.63 billion for the quarter, compared to the consensus estimate of $11.40 billion. Visa had a net margin of 51.68% and a return on equity of 65.00%. Visa's revenue for the quarter was up 14.4% on a year-over-year basis. During the same period last year, the firm posted $2.98 EPS. Equities analysts predict that Visa will post 13.12 EPS for the current fiscal year.

Visa News Summary

Here are the key news stories impacting Visa this week:

• Positive Sentiment: Visa exceeded expectations with fiscal Q3 earnings of $3.32 per share versus the $3.23 consensus, while revenue rose 14.4% year over year to $11.63 billion, ahead of estimates. Payments volume surpassed $4 trillion, supporting the view that consumer and business spending remains resilient. Visa Posts Strong Q3 Results
• Positive Sentiment: Several analysts became more bullish after the results. JPMorgan raised its price target to $450 from $400 and maintained an overweight rating; Robert W. Baird increased its target to $420 from $412 with an outperform rating; Cantor Fitzgerald reaffirmed overweight with a $410 target. Analyst Ratings and Price Targets
• Positive Sentiment: The planned reduction of approximately 2,600 jobs, or 7% of Visa’s workforce, is being viewed by some investors as a way to improve efficiency and fund growth in artificial intelligence, stablecoins, commercial payments and money-movement services. Visa also declared a quarterly dividend of $0.67 per share. Visa Workforce Reduction
• Positive Sentiment: Visa is expanding future growth opportunities through Visa Direct, stablecoin settlement infrastructure and partnerships such as the Visa-branded debit card supporting X Money. These initiatives could broaden revenue beyond traditional card payments. Visa Stablecoin Strategy

Visa Company Profile

Visa Inc is a global payments technology company that facilitates electronic funds transfers and digital commerce by connecting consumers, merchants, financial institutions and governments. The firm operates one of the world's largest payment networks, providing processing, authorization, clearing and settlement services for credit, debit and prepaid card transactions. Visa's network-based model enables partner banks and other issuers to offer branded payment products while Visa focuses on the infrastructure, standards and technologies that move money securely and efficiently around the world.

Visa's product and service portfolio includes card-based payment products for consumers and businesses, real-time push-payment capabilities, tokenization and authentication services, fraud and risk-management tools, data analytics and APIs for fintech and merchant integration.

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