7 Best Stocks to Invest in for Medium Term

2. Visa Inc. (NYSE:V)

Number of Hedge Fund Holders: 163

5-Year Average Annual Revenue Growth Rate: 10.1%

5-Year Average Payout Ratio: 22.4%  

Visa Inc. (NYSE:V) is an American credit card service corporation that specializes in electronic funds transfers throughout the world. The stock has risen by almost 10% since the beginning of 2024, despite facing challenges such as inflation, reduced consumer spending, and pressure from merchants to decrease its swipe fees. One of the main reasons for its success is its business model. Visa does not issue its own credit cards; instead, it collaborates with banks and other financial institutions to provide Visa-branded cards. The company processes payments through its network, charging a swipe fee, which it splits with card issuers while retaining the rest as revenue.

This business approach has worked well for Visa Inc. (NYSE:V), as the company has delivered a 5-year average annual revenue growth of over 10%. Over the years, the company has created new segments that are growing faster than its traditional business. While these segments are still smaller in scale, they are helping to alleviate some of the pressures facing the overall business. In fiscal Q3 2024, the company reported revenue of nearly $9 billion, which showed a 10% increase from the same period last year. Its essential business metrics showed stability, with a 7% increase in payment volume, a 14% rise in cross-border transactions, and a 10% growth in processed transactions. Additionally, during the quarter, the company enhanced its global partnerships and launched several innovations designed to influence the future of commerce.

In the most recent quarter, Visa Inc. (NYSE:V) remained committed to its shareholder commitment, returning $5.8 billion to investors through dividends and share repurchases. In addition to this, the company has raised its payouts for 15 years in a row. The company’s quarterly dividend payment comes in at $0.52 per share for a dividend yield of 0.73%, as of September 19.

As of the close of Q2 2024, 163 hedge funds held stakes in Visa Inc. (NYSE:V), compared with 166 in the previous quarter, as per Insider Monkey’s database. These stakes are worth nearly $25 billion in total. With over 16.7 million shares, TCI Fund Management was the company’s leading stakeholder in Q2.