Visa is one of the world’s most valuable businesses. It’s a global leader in electronic money transfers, supplying a range of banks and other financial institutions with branded Visa payment products to provide security and convenience to businesses and consumers alike.
Visa was founded in September 1958 and is headquartered in San Francisco, California. It was initially established as the Bank of America’s credit card program, as a direct rival to Mastercard, then known as Master Charge. By 1976, the program rebranded from BankAmericard to Visa.
Today, Visa can process up to 120,000 simultaneous transactions across its four highly secure data centres in Virginia, Colorado, London and Singapore. At the time of writing, Visa is the second biggest card payment provider on the planet after China UnionPay. Although, Visa has a more diverse market share, which can spread the risk when it comes to Visa stock.
Since the public listing of Visa stock, the Visa share price history looks pretty positive for long-term investors. It’s posted all-time growth of 1,185%. More recently, the Visa share price fell off a cliff during the onset of the Covid-19 pandemic, falling from a high of $210 in February 2020 to $146 by mid-March of the same year.
It has rallied strongly since then, although the Visa stock, like many others intrinsically linked to the financial services sector, struggled in 2022. The Visa share price has fallen over 6% through 2022, due largely to the slowing global economy.
More encouragingly, its Q3 2022 earnings results showed that the payment provider overshot its forecast earnings and subsequently increased its dividend to shareholders by 20%.
Although you would have made a significant sum holding Visa stock a couple of decades ago, there is less chance of experiencing those kinds of returns now that it is firmly established as a market-leading company. Buying into Visa today could therefore bring more downside risk than upside potential.
Of course, if you want greater flexibility with your investments, you could always trade the Visa share price instead, without needing to own the underlying asset.
Using a contract for difference broker, you can go long (buy) or short (sell) on Visa. If you go long and the price rises, you’ll profit and if you go short and the price falls, you’ll also make a profit. It’s a way of adding a second string to your bow.
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* The spreads provided are a reflection of the time-weighted average. Though Skilling attempts to provide competitive spreads during all trading hours, clients should note that these may vary and are susceptible to underlying market conditions. The above is provided for indicative purposes only. Clients are advised to check important news announcements on our Economic Calendar, which may result in the widening of spreads, amongst other instances.
The above spreads are applicable under normal trading conditions. Skilling has the right to amend the above spreads according to market conditions as per the 'Terms and Conditions'.
Which are the competitors of Visa shares?
Visa shares compete directly with Mastercard, American Express and Discover Financial Services. All four of these companies provide credit and debit card services to customers around the world. Visa is the market leader in terms of transaction volume and number of cards issued. However, the competition between these four firms is intense, as they all strive to offer the best products, services, and benefits for their customers.
All of these companies are actively developing new technologies to stay ahead of the competition and further increase their market share. It will be interesting to see which company is able to gain a larger foothold in the payments industry over time. As the competition continues to heat up, Visa shares could benefit from increased demand for their services.
Who owns most Visa shares?
According to the most recent financial statements, mutual funds and ETFs own the most Visa shares. Vanguard owns the largest share with 7% ownership followed by Blackrock, State Street Global Advisors, and Fidelity Management & Research. Additionally, hedge funds have a large stake in Visa's stock as well.
The top five hedge fund holders are LSV Asset Management, Dimensional Fund Advisors, Capital International Investors, Northern Trust Global Investments and Goldman Sachs Group. Collectively, these aforementioned entities own over a quarter of Visa's outstanding shares. These stakeholders are followed by individuals and other institutions that hold the remainder of the stock. It is important to note that the shareholders may change in the future depending on the stock price movements and other market conditions.
Do Visa pay dividends?
Yes, Visa does pay dividends. The current dividend yield is 0.87%. The most recent dividend payment was $0.45 on 01/12/2022, and the last three dividend payments were $0.375 on 09/01/2022, 06/01/2022 and 03/01/2022 respectively. Investors should keep an eye out for future dividends, as Visa may increase or decrease the number of its distributions in the future.
Investing in Visa could be a great way to add some diversification to your portfolio, and the dividends can provide an additional source of income. However, it's important to research any investment before committing funds. This includes evaluating the company's overall financial stability and risk profile. By taking these steps you would be better positioned to make an informed decision that suits your needs and objectives. Good luck!
Why Trade [[data.name]]
Make the most of price fluctuations - no matter what direction the price swings and without capital restrictions that come with buying the underlying asset.