In a sign of strength and confidence in future growth prospects and cash flow, Visa (V) today announced a 47% dividend increase from 15 cents per share to 22 cents per share. This is the third year in a row that Visa has increased its dividend payout.
With shares closing at 90 on Wednesday, that would value the dividend increase at a 1% dividend payout. While at face value, a 1% dividend payout may not seem like an “income investment” per se, many dividend investors prefer the dividend strategy of focusing on GROWTH of dividend payouts over actual current yield.
The following statement was provided by CEO Joseph Saunders in support of the move:
“By authorizing a significant dividend increase for the third consecutive year, the board of directors is delivering on that commitment and demonstrating their ongoing confidence in the strength of the business.”
Visa (V) Stock Performance:
6 Month – 20%
YTD – 29%
5Year – 41%
Disclosure: No position in Visa.
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