Dow Jones Industrial Index: Visa

  Visa triggered a loss-reduction selling rule of 7 to 8 percent from 217.75 purchase points, according to IBD MarketSmith chart analysis. Stocks fell 0.5 percent on Monday.

What is Visa?

Credit card giant Visa (NYSE: V) is another relatively easy-to-understand business, yet its business model like Coca-Cola might surprise you. When you use a Visa card to pay for a purchase, you are borrowing from a bank or other lender linked to the card, not Visa. This organization collects the interest payments you make, not Visa. Visa charges a percentage on every purchase you make through the card.

A modest percentage, but its adding up

Fees make up a large part of Visa's revenue. Visa collected more than $ 21 billion in commission fees in fiscal 2020. Visa looks like an agile company that adapts to changing times, offering new payment ways such as tap-to-pay and enhanced security features through tokens. As digital payments will increase globally in the coming years, Visa will of course benefit from this.

Visa is a company that pays dividends

While its final return of 0.6 percent may seem rather insignificant, it has gained an average of 18 percent annually over the past five years. Assuming that it will continue to grow at a similar rate for the next ten years, its return will almost double.   Dow Jones Industrial Index: Visa Source: https://www.investors.com/ You may also be interested in this:

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