S&P 500
7,226.20
+0.01%
Dow Jones
49,494.60
-0.62%
Nasdaq 100
27,685.40
+0.66%
Russell 2000
2,804.78
-0.02%
FTSE 100
10,364.50
0.00%
Nikkei 225
59,260.50
-0.78%

Banking, finance, and taxes

Visa Gives Shareholders A Pay Raise (V, MA)

Photo of Jon C. Ogg
By Jon C. Ogg Updated Published
Follow 24/7 Wall St. on Google
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Visa Inc. (NYSE: V) just joined the ranks of companies hiking their annualized dividend  payments.  This is the second annual hike in a row.  The increase was bumped up by 20% to $0.15 from $0.125 per share per quarter.  This hike translates to $0.60 per year rather than $0.50 per year in annualized paybacks.  Unfortunately, this comes to only about 0.75% for an implied yield based upon the closing price of $79.52.  The prior yield was 0.6%.

The big question that had to be answered was how much the interchange fees were going to bite into earnings.  Whether estimates change or not is up to the outcome of the interchange issue and based upon the number of transactions globally.  Visa’s annualized estimates are $3.90 EPS for 2010 and $4.73 EPS for 2011, according to Thomson Reuters.

Many companies target a 40% payout.  Without converting the share classes and taking that into consideration, Visa could afford to pay out another $1.00 per share if there is no drastic change to its earnings projections ahead.

As far as how this compares to rival MasterCard Incorporated (NYSE: MA), it still has an even lower yield down around 0.30% based upon its annualized payout of $0.60 and its $240.52 share price.

Visa has raised the payout, and MasterCard still has much room to improve.

JON C. OGG

Photo of Jon C. Ogg
About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. a673b.bigscoots-temp.com.

Featured Reads

Our top personal finance-related articles today. Your wallet will thank you later.

Fed’s Rate Freeze Could Sting for Social Security Recipients
Maurie Backman |

Fed’s Rate Freeze Could Sting for Social Security Recipients
'Convert $100,000 a Year to Get Them to the Top of the 22%': The Roth Plan for a Couple With $2.3M in 401(k)s
Jeremy Phillips |

'Convert $100,000 a Year to Get Them to the Top of the 22%': The Roth Plan for a Couple With $2.3M in 401(k)s

Continue Reading

Jon C. Ogg |

Five Companies That Should Double Their Dividends — or More

ThinkstockIt seems that investors suddenly have grown to dislike dividend-paying stocks, if you have been watching many of the riskier,…
7 Large Companies That Easily Could More Than Double Their Dividends
Jon C. Ogg |

7 Large Companies That Easily Could More Than Double Their Dividends

Many large-cap stocks could quite easily come with much higher dividends than they do currently. Here are seven companies that could easily double…
6 Big Dividend Hikes Expected Before Year-End
Jon C. Ogg |

6 Big Dividend Hikes Expected Before Year-End

With less than 45 days remaining until the start of 2016, the goal of 24/7 Wall St. is to identify…
Jon C. Ogg |

6 Big Companies That Just Now Raised Their Dividends, Some Very Unexpectedly

Six well-known companies raised their dividends after the close of trading on Wednesday. So much for that slowdown worry, maybe.
Jon C. Ogg |

Only A Few Remaining DJIA Dividend Hikes Still To Come In 2012 (T, VZ, CAT, GE, MCD, MSFT, DIS)

The Dow Jones Industrial Average has one trait that most other broad market indexes cannot claim: Every single component pays…
10 Dividends That Can See Double-Digit Growth for 5 Years or Longer
Jon C. Ogg |

10 Dividends That Can See Double-Digit Growth for 5 Years or Longer

Growing dividends over time is a firm commitment to shareholders, but growing a dividend by 10% or more year after…
Jon C. Ogg |

MasterCard Chases Visa on Dividend Hike and Stock Buyback

MasterCard has decided to chase rival Visa with a dividend hike and with a stock buyback plan as well.
10 Dividends That Can See Double-Digit Growth for 5 Years or Longer
Jon C. Ogg |

10 Dividends That Can See Double-Digit Growth for 5 Years or Longer

Growing dividends over time is a firm commitment to shareholders, but growing a dividend by 10% or more year after…
5 Top Dividend Hikes Expected Before the End of 2015
Jon C. Ogg |

5 Top Dividend Hikes Expected Before the End of 2015

It is that time of year when investors and consumers alike are starting to think about the end of this…

Top Gaining Stocks

Cboe Global Markets
CBOE • Vol: 1,568,143
New Pluto Global
PSKY • Vol: 12,285,993
Seagate Technology
STX • Vol: 7,378,346
Oracle
ORCL • Vol: 26,317,675
Datadog
DDOG • Vol: 6,247,779

Top Losing Stocks

LKQ
LKQ • Vol: 4,367,433
Clorox
CLX • Vol: 13,260,523
Stryker
SYK • Vol: 4,519,455
Mohawk Industries
MHK • Vol: 1,859,865
Amgen
AMGN • Vol: 3,818,618