2 Payment Stocks to Buy and Hold That Raised Their Dividends 14% in Their Latest Increases
2026-10-12 18:15
•Reuben Gregg Brewer •The Motley Fool
••••••• •• Axe Cap view
Two Payment Giants Boost Dividends by 14%, Signal Growth Ahead
Visa and Mastercard raised dividends strongly, reflecting confidence in digital payments growth.
Visa and Mastercard’s recent 14% dividend hike stands out in a world where inflation keeps biting real incomes. These companies aren't just waving the flag for payment processing; they're benefiting from a shift away from cash in South Africa too, especially as e-commerce and digital fraud concerns grow. Visa’s solid 10% transaction volume growth and Mastercard’s impressive earnings gain underscore resilient earnings despite global economic jitters. Their premium valuations might raise eyebrows around 31 times price-to-earnings, but that’s justified by consistent growth and defensive business models. For South African investors, the USD/ZAR rate remains important as it influences the rand cost of holding such global exposure. However, if tech disruptions or regulatory changes in key markets take a harder-than-expected toll, these stocks might falter. this is just our opinion and not financial advice
Buy and hold Visa and Mastercard for steady dividend growth and exposure to global digital payment trends, but keep an eye on USD/ZAR currency swings. Trim if valuations spike far beyond historical norms.
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- MA
- USD/ZAR
- Sharper-than-expected global economic slowdown
- Unforeseen regulatory tightening in payment sectors
7/10
Visa and Mastercard recently increased their dividends by approximately 14%, significantly outpacing inflation. Both companies benefit from the ongoing shift from cash to card payments, e-commerce growth, and fraud prevention services. Despite premium valuations around 31x P/E, analysts view them as reasonably priced given strong growth prospects and resilience to economic downturns.
Our take is based on reporting first published by The Motley Fool.