10 Best GARP Stocks That Pay Dividends

1. Visa Inc. (NYSE:V)

Number of Hedge Fund Holders: 165

Visa Inc. (NYSE:V) is a California-based payment card service company that offers a wide range of related services and products to its consumers. The company reported strong earnings for fiscal Q1 2025. The company achieved revenue of $9.5 billion, a 10% increase from the previous year. For the quarter ending December 31, 2024, Visa processed 63.8 billion transactions, marking an 11% year-over-year rise. Moreover, payment volume increased by 9% on a constant-dollar basis compared to the same period last year.

Despite ongoing discussions about the potential impact of fintech and alternative payment methods, Visa Inc. (NYSE:V)’s competitive edge has only strengthened over time. The company benefits from its vast scale and an inflation-resistant business model. Its performance reflects solid business fundamentals, having achieved a total return compound annual growth rate (CAGR) of 21.6% since going public in 2008.

Visa Inc. (NYSE:V) ended the quarter with a robust cash position, with over $16 billion in cash and cash equivalents. Operating cash flow increased to $5.4 billion, up from $3.6 billion in the same quarter last year. The company also returned $5.1 billion to shareholders through dividends and share repurchases. It currently pays a quarterly dividend of $0.59 per share and has a dividend yield of 0.67%, as of February 14. The company has been rewarding shareholders with growing dividends for the past 16 years.

Overall Visa Inc. (NYSE:V) ranks first on our list of the best GARP stocks that pay dividends. While we acknowledge the potential for V as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than V but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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