Why Visa Is a Top Dividend Stock Despite a Yield Under 1%

Shares of the $630 billion credit card company Visa (NYSE: V) may yield just 0.82% today, but if history is any guide, that number could climb in a hurry.Since it began paying a dividend in August 2008, payouts have risen by 2,452%, to $0.67 per share each quarter. Anyone who put $1,000 into this company back then and held would be collecting $597 each year in dividends today. Of course, past performance is no guarantee of future results, but this growth is striking. If Visa can increase its payout at even half that rate, investors buying shares today will eventually enjoy a yield on cost of 11%, before any capital appreciation is taken into account.So, can Visa keep increasing its dividend so prolifically? There are three reasons to think it can at least match its track record of dividend growth in the years ahead.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool