12. Visa Inc. (NYSE:V)
Berkshire Hathaway’s Stake Value: $2,177,834,326
Sector: Financials
Industry: Credit Services
An American credit card service corporation, Visa Inc. (NYSE:V) ranks twelfth on our list of the best Warren Buffett dividend stocks. The company manages a credit card network that facilitates the transfer of funds from customers to merchants. It collaborates with financial institutions that handle the credit aspect of transactions conducted through its channels. Despite the challenges posed by rising inflation in recent years, Visa Inc. (NYSE:V) has shown resilience. The company has also developed new segments that are growing more rapidly than its traditional business, and although these segments are still smaller, they are helping to offset some of the pressures on the overall business. The stock has surged by over 396% over the past 10 years, outperforming the broader market, which returned 183% during this period.
In fiscal Q3 2024, Visa Inc. (NYSE:V) reported revenue of $8.9 billion, which showed a 10% growth from the same period last year. The company’s key business metrics remained stable, with a 7% increase in payments volume, a 14% rise in cross-border volume, and a 10% growth in processed transactions. During the quarter, the company also strengthened its partnerships with clients globally and introduced several new innovations aimed at shaping the future of commerce.
Aoris Investment Management also highlighted strengths in Visa Inc. (NYSE:V)’s operations in its Q2 2024 investor letter. Here is what the firm has to say:
“Visa Inc. (NYSE:V) operates the world’s largest payments network, which facilitates the movement of money between merchants, financial institutions, consumers, businesses, and governments.
The company is best known for enabling consumers to make debit and credit card payments. In the year to September 2023, 4.3 billion Visa cardholders made 213 billion transactions on its network, to a total value of US$12.1 trillion.
Compared to cash and cheques, which are still widely used around the world, Visa’s network is a more convenient, secure, and ubiquitous way for consumers to pay. Visa has invested to reduce friction and fraud in the payments experience, to the benefit of both merchants and consumers…” (Click here to read the full text)
On July 23, Visa Inc. (NYSE:V) declared a quarterly dividend of $0.52 per share, which was in line with its previous dividend. Overall, the company has been raising its payouts for 15 consecutive years, which makes V one of the best Warren Buffett dividend stocks. In fiscal Q3 2024, the company returned $5.8 billion to shareholders through dividends and share repurchases.
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.
