7. Mastercard Incorporated (NYSE:MA)
Chilton Investment Company’s Stake Value: $153,061,727
Number of Hedge Fund Holders: 148
Mastercard Incorporated (NYSE:MA) is a leading global payments technology company that connects consumers, businesses, and financial institutions to facilitate secure and efficient electronic transactions worldwide. Mastercard Incorporated (NYSE:MA)’s revenue continues to grow steadily, driven by higher consumer spending, expansion into new markets, and the growth of digital payments. With solid profit margins and strong cash flow, Mastercard Incorporated (NYSE:MA) is well-equipped to handle economic challenges while staying profitable. Additionally, Mastercard Incorporated (NYSE:MA)’s ongoing focus on innovation—particularly in digital solutions, cybersecurity, and new payment technologies—as well as its ventures into data analytics and AI, further strengthens its future growth prospects.
Although Mastercard Incorporated (NYSE:MA)’s dividend yield is currently low at 0.6%, its impressive history of dividend increases makes it an attractive investment. Mastercard Incorporated (NYSE:MA) has raised its dividend for 12 straight years, with a 500% increase over the last decade, reflecting an annual growth rate of about 20%. This consistent dividend growth suggests that Mastercard Incorporated (NYSE:MA) could offer a higher yield in the future if this trend continues. Additionally, despite the modest yield, Mastercard Incorporated (NYSE:MA) has provided exceptional returns, achieving a 552% total return over the past 10 years compared to the S&P 500’s 227%.
Mastercard Incorporated (NYSE:MA) consistently earns “Buy” ratings from analysts as they see considerable growth potential, with price targets ranging from $424 to $545 and an average of $493.47, indicating a possible increase of up to 17.24%. Mastercard Incorporated (NYSE:MA) is ranked 7th on our list of safe stocks to buy according to billionaire Chilton. By the end of the first quarter of 2024, Chilton Investment Company owned 317,839 shares of Mastercard Incorporated (NYSE:MA), worth $153,061,727. This investment made up 4.19% of Chilton’s total portfolio, according to regulatory filings.
L1 Capital International Fund stated the following regarding Mastercard Incorporated (NYSE:MA) in its Q2 2024 investor letter:
“The share prices of Mastercard Incorporated (NYSE:MA) and Visa, both long term Fund investments, have both drifted down over recent months. There have been no dramatic developments, but there has been a general slight softening in the rate of growth of consumer spending in the U.S. and globally, a court decision rejecting Mastercard and Visa’s proposed settlement of a long-lasting dispute with U.S. merchants as well as other modest adverse regulatory developments. We continue to view Mastercard and Visa as two of the highest quality businesses in the world, and both are well placed to continue to deliver attractive, risk adjusted returns to shareholders over time.”
