11 Best Safe Stocks to Buy According to Hedge Funds

6. Visa Inc. (NYSE:V)

Number of Hedge funds holding: 181

Forward Dividend: $2.36

Visa Inc. (NYSE:V) is a leading payments technology company that promotes digital currency instead of cash and checks. Founded in 1958, the company serves private clients, financial entities, government institutions, and merchants in more than 200 countries and territories. The core offerings of the company include payment cards, mobile payments, commercial payments, transaction processing services, and other related digital operations. Headquartered in San Francisco, California, the digital powerhouse aims to connect individuals and institutions.

Its excellent fundamentals, solid moat, high ROIC, EPS growth, and strong profitability make Visa Inc. (NYSE:V) one of the most reliable stocks in the U.S. market. If we deeply look into it, the company’s revenue reflects a consistent rise, with a model that extracts efficient profitability. Having said that, the business model of the giant is such that it makes it possible not to take credit risks, enabling it to generate massive cash with high and stable margins.

Visa Inc. (NYSE:V) continues to emphasize substantial cross-border growth, enhancing the number of cards at a significant single-digit rate. What’s even more amazing is that the revenue could be considered a proxy for nominal GDP in the long run, since Visa organically captures the growth that leads transactions to expand over time, not only with the economy but also with inflation.

The company is also investing in technology for practices like reducing fraud and improving overall security. Visa Inc. (NYSE:V) has allocated over $12 billion in the last five years to protect consumers all around the globe. Just recently, the management announced a big event to unveil product launches, solutions, and technology partners.

Summing it all up, Visa Inc. (NYSE:V) is built on bedrock fundamentals, including economies of scale, networks, a capital-light model, and indexed to inflation. As long as the company can retain these, we have a good reason to believe that it will hold strong when others shake. V is one of the best safe stocks to consider.