How to Buy Visa (V) Stock

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Contributor, Benzinga
August 22, 2024

Investing in Visa Inc. (V) stock offers a chance to engage with one of the top financial services companies. Visa is well-known for its global payment network and innovative technology solutions. As digital payments gain popularity, Visa is positioned to benefit from this trend. This makes it an appealing choice for investors interested in the financial sector. Whether you are an experienced investor or new to the stock market, knowing how to buy Visa stock can help you leverage its potential for long-term growth and stability. This guide will outline the necessary steps to purchase Visa stock, including selecting the right brokerage and making your first trade.

TickerCompany±%PriceInvest
VVisa-0.91%$313.77Buy stock

How to Buy Visa Stock

Visa stock can be purchased through any reputable broker authorized to execute trades of stocks listed on the NYSE. Keep in mind that how you buy Visa stock is just as important as where you trade, so make sure you pick the right broker.

If you just want to buy some Visa stock as an investment to leave in a brokerage account for capital appreciation over the long term, you can open an account with a discount broker. You’d pay a lower commission but probably wouldn’t get access to the extra features you would get with a full-service broker. 

Step 1: Pick a Broker

Knowing what you need from a broker in services, trading platforms and commissions will make your choice a lot easier since online brokers can vary considerably. For example, E*TRADE has a bank associated with it, which would make it a perfect choice if you needed that service. 

Interactive Brokers provides an excellent full-featured trading platform, although the platform might not be suitable for beginners. You’ll also get access to trade multiple assets in over 120 different world markets. Check out Benzinga’s guide on how to choose a broker for more information.

Step 2: Open Demo Accounts to Assess Different Trading Platforms

Most online brokers offer a free demo or virtual account. You can practice trading with virtual money so none of your funds will be at risk. Open these accounts at no cost with several different brokers to get a sense of which trading platform feels most comfortable and what broker best fills your needs.

Step 3: Fund an Account

You’re now ready to fund a live trading account. Even though you can open accounts with some brokers with no minimum deposit, you’ll still need to fund the account with the money required to purchase your V stock. 

Each broker has its own specific requirements for opening a funded trading account, so make sure you check with your preferred broker to ensure that you meet all the requirements and deposit the appropriate amount of funds for the amount of stock you plan on buying. Funding methods vary among different brokers, although most accept bank wire transfers, debit cards and verified personal checks.

Step 4: Buy a Visa Stock

Watch how Visa stock trades over the course of a couple of trading sessions to give you a better feel for it. You can also use technical analysis indicators and support and resistance points to zero in on a buying level. You can then place a bid with your broker for the amount of V stock you want to buy.

Visa Stock and Its History

Visa Inc. is a global leader in digital payments. It has been important in the financial services industry since its start in 1958 as BankAmericard. Over the years, Visa changed how transactions are done worldwide. The company grew through partnerships and new technology. It shifted from a credit card service to a complete digital payment platform. This shows Visa's ability to adapt to changes in finance. Visa’s shares are traded on the New York Stock Exchange under the symbol “V.” Its stock is a solid choice for investors looking for growth. It also reflects trends in consumer spending and technology. Learning about Visa's stock history helps understand its market position and future growth potential.

Visa

Visa Inc. has a stock price of $266.26 USD and a Zacks Rank of 3 (Hold). The company operates in the Financial Transaction Services industry. As a global leader in digital payments, Visa enables secure and efficient transactions. CEO Ryan McInerney leads the company and its strategic direction. A strong executive team manages various regions and functions. They help Visa innovate in payment technology. This leadership team addresses challenges in the financial landscape and boosts Visa's global presence. With a focus on customer satisfaction and technology, Visa sets the standard in the financial transaction services sector. It plays a key role in the digital payments world.

Visa’s Stock History

Visa's stock history has been marked by significant price movements that reflect its robust performance in the market. Currently trading at $266.19, the stock saw a slight decrease from the previous close of $266.47. This modest fluctuation highlights the generally stable nature of Visa's stock amidst broader market dynamics.

With a market capitalization of $528.46 billion and approximately 1.67 billion shares outstanding, Visa remains a key player within the financial services sector. Historically, Visa's stock price has demonstrated resilience and growth, often benefitting from increasing consumer spending and the shift towards cashless transactions.

These figures illustrate how Visa maintains strong investor confidence, with its large market cap positioning it among the most significant foundations of financial technology investments. Despite the recent dip in trading value, Visa's overall performance continues to reflect its solid fundamentals and growth potential in the global payment ecosystem.

Future Outlook for Visa

Visa is poised for significant growth in the digital payment services sector despite facing challenges and regulatory risks. As global commerce continues to expand, Visa’s extensive network and innovative technology position it as a leader in facilitating seamless transactions worldwide. The company's broad suite of products—ranging from debit and credit cards to commercial payment solutions—cater to diverse consumer and business needs, providing a robust platform for future revenue streams.

Visa faces various growth challenges, such as rising competition from fintech firms and changing consumer preferences. Additionally, regulatory risks are present, with governments around the world examining payment processing fees and data privacy practices. It will be important for Visa to adapt to these changes while ensuring compliance to achieve continued success.

The increasing trend of digitizing financial transactions offers a notable opportunity for Visa. By utilizing its well-known brand and existing infrastructure, the company can take advantage of the growing need for digital payment options. Ultimately, Visa's capacity to innovate and respond to market dynamics will be crucial in reinforcing its position in the future of global commerce.

Why Should You Buy Visa Stock?

Investing in Visa stock can be a good opportunity. It helps diversify portfolios and capitalizes on the growth of digital payments. Visa is a leader in the payment processing industry. The shift towards cashless transactions has increased in recent years. Visa has a solid business model and a strong brand. Its widespread network supports this growth. The company benefits from more consumers and businesses using digital payment methods. Visa also shows consistent financial performance and offers dividends. Its focus on technology and innovation positions it for long-term growth. This makes Visa attractive for both experienced and new investors looking for stability and potential gains.

Strong Market Position

Visa currently holds a dominant position in the payments industry, showcasing resilience and adaptability amid fluctuating market conditions. The company continues to thrive in the digital payments sector, capturing significant market share through innovative solutions that cater to a diverse customer base. Strong analyst ratings highlight Visa's robust growth prospects. For example, analyst Sanjay Sakhrani has achieved an impressive 89.47% success rate over the past year, indicating confidence in Visa's performance. Another analyst has maintained a remarkable 95.65% success rate over two years, reinforcing the optimism surrounding Visa’s ability to navigate challenges and seize opportunities.

Growth in Digital Payments

The rise of digital payments is driven by several factors. Increased smartphone usage plays a significant role. As smartphones become common, more consumers use digital wallets and payment apps for easier transactions. The growth of e-commerce has also contributed. Online shopping is now typical, leading businesses to adopt digital payment methods. The COVID-19 pandemic changed consumer habits too. Many people prefer contactless payments for safer transactions. This trend is expected to continue. It reflects a broader focus on convenience, speed, and security for financial transactions.

Diverse Revenue Streams

Visa has diverse revenue streams. This enhances its financial stability. The company can thrive despite market fluctuations. It generates income from transaction fees and international services. Visa also offers value-added services like fraud protection. This reduces reliance on any single revenue source. The diversification strategy mitigates risks from economic downturns. It also encourages innovation through new service offerings. Visa's focus on expanding services in emerging markets strengthens its revenue base. This allows for greater adaptability.

Strong Financial Performance

Visa has shown strong financial performance. The company reported a 10% increase in revenue year-over-year, reaching $8.8 billion. Earnings per share rose by 12%, now at $2.29. A significant factor in this success has been the increase in cross-border transaction volumes. These volumes surged by 16% year over year. Visa's efforts to explore new segments are paying off. These segments are growing faster than its traditional business lines. This diversification helps Visa maintain financial resilience. It also positions the company for sustainable growth in a changing market.

Global Expansion Opportunities

Visa aims for global expansion. The strategy focuses on emerging markets, especially in Asia and Africa. In India and Vietnam, rapid economic growth and a growing middle class increase the demand for financial services. Africa's young population and growing mobile connectivity also offer vast opportunities. Digital transformation is key for accessing these markets. It allows Visa to connect with customers through customized e-commerce and digital marketing. Building local partnerships can aid market entry by utilizing regional expertise. This approach can help Visa integrate more smoothly into these dynamic regions.

Considerations Before Buying Visa Stock

Investing in Visa stock can be a good opportunity for both experienced and new investors. Digital payments and financial technology are growing quickly. Before investing, it's important to consider several factors. First, understand how Visa makes money. Next, look at its position in the payments industry. Check its financial health by reviewing revenue growth and profit margins. Also, consider trends that could affect consumer spending. Regulatory issues, geopolitical factors, and technology changes should be examined as well. By analyzing these aspects, investors can make better decisions for long-term growth.

Market Competition

Visa operates in a competitive environment with major players like Mastercard and American Express. These companies rely on strong brand loyalty and innovative products to gain market share. The digital payments sector is constantly evolving. To keep its competitive advantage, Visa must adapt consistently. The growth of e-commerce and the need for contactless payments increase competition. This situation pushes Visa to innovate and improve its services to align with changing consumer preferences.

Regulatory Environment

Visa operates in a complicated regulatory environment. There is growing scrutiny over its fees and business practices. Recent antitrust pressures have raised concerns about its swipe fees. These fees are important for Visa's revenue. Ongoing legal challenges could require Visa to reduce these fees. This may impact Visa's profit margins and market position. It is crucial for Visa to navigate this changing regulatory landscape. Doing so will help the company maintain its operations and financial strategies despite the legal uncertainties.

Economic Sensitivity

Visa's performance is affected by economic fluctuations. These fluctuations impact consumer demand and spending behavior. Economic downturns can cause reduced transaction volumes and unpredictable revenues. Changes in regulatory policies and inflation can also add costs. This complicates Visa's financial outlook. To maintain resilience, Visa must respond effectively to these economic challenges. Adaptability is essential in a volatile market.

Technological Changes

Technological advancements are changing the payments industry. This growth and innovation are driving Visa's development. The rise of digital wallets, contactless payments, and blockchain technology has transformed consumer transactions. Visa needs to keep investing in technology. It must also adapt to new trends to meet consumer expectations. Staying competitive is essential. If Visa fails to keep up with technological changes, its market position could be at risk. New players with innovative solutions may emerge.

Valuation Metrics

Visa's current price-to-earnings (P/E) ratio is 30.6. This is higher than historical averages and may concern some investors. However, Visa's strong growth prospects support this valuation. The ongoing shift towards digital payments and expansion into new markets are key factors. The company has high profit margins and a strong return on equity. These emphasize its ability to generate substantial profits. While the elevated P/E ratio suggests a premium valuation, Visa's growth potential and solid market position make it an appealing investment in the financial sector.

Is Visa Stock Right for You?

Visa Inc. has been an excellent investment for many people over the past decade, and it continues to be one of the best stocks in its sector. Financial sector stocks make up a significant part of the S&P 500 Index and correlate strongly with the stock market and current economic conditions, which could be an issue for the stock if the U.S. economy heads south. 

Buying V stock makes sense if you hold a favorable outlook for the U.S. economy and the stock market, although a strong economic downturn or a significant data breach could weigh heavily on Visa’s stock price. Still, due to Visa’s large customer base and substantial international presence, the stock’s downside risk might be limited making it a buy on pullbacks. 

Ready to start building out your portfolio? Check out Benzinga's guide on how to start creating an investment strategy.

Frequently Asked Questions

Q

How do I buy Visa stocks?

A

To buy Visa (V) stock, open an account with a brokerage like Fidelity or Robinhood, fund it, research Visa, and place your order using the ticker (V). Then, monitor your investment.

 

Q

Should I buy stock in Visa?

A

Deciding to buy Visa (V) stock depends on its strong market position, financial performance, and growth potential in digital payments. Consider its valuation and your risk tolerance before making a decision.

 

Q

What is the payout for Visa stock?

A

Visa pays a quarterly dividend of $0.60 per share, or $2.40 annually, with a dividend yield of about 0.8%. The company has a history of increasing its dividends, reflecting strong financial performance.

Jay and Julie Hawk

About Jay and Julie Hawk

About Julie: 

Julie Hawk earned her honors undergraduate degree from the University of Michigan before pursuing post-graduate scientific research at Cambridge University. She then started work in the private sector as a business systems analyst for a major investment bank, where she qualified as a Series 7 Registered Representative and received comprehensive training in various financial products. Further honing her skills, she attended the prestigious O’Connell and Piper options training course in Chicago, mastering professional option risk management techniques.

Julie then transitioned into the role of a professional Interbank forex trader, currency derivative risk manager and technical analyst, ascending to the position of vice president over a 12-year career in the financial markets. Julie’s illustrious banking career spanned working for major international banks in New York City, London, and San Francisco, where she served as an Interbank dealer, technical analyst, derivative specialist and risk manager. Her responsibilities included educating, devising customized foreign exchange hedging and risk-taking strategies, and overseeing large-scale transactions for esteemed banking clients, including corporations, fund managers and high-net-worth individuals. As part of her responsibilities, Julie managed substantial portfolios of forex options, spot, and futures positions as a currency options risk manager, earning recognition for executing innovative and highly profitable forex derivative transactions. Julie also spearheaded educational conferences on currency derivatives.

During her banking career, Julie attained world-class expertise in technical analysis, including Elliott Wave Theory, and pioneered research into automated trading and trading signal systems. An active member of the San Francisco Writers’ Guild, Julie also authored trade strategies, educational material, market commentary, newsletters, reports, articles, and press releases. She became a sought-after market expert who was frequently interviewed by financial magazines and news wires such as REUTERS.

Following her retirement from the banking sector, she dedicated 15 years to online forex trading, mentoring and freelance writing for TheFXperts, which she co-founded with her husband Jay. Julie is the co-author of “Forex Trading: A Beginner’s Guide” and “Technical Analysis for Financial Markets Traders,” in addition to five other books on financial markets trading and personal finance. She now focuses on writing articles on financial markets for platforms like Benzinga, although she continues to trade forex online and mentor fellow traders as part of TheFXperts’ financial team.


About Jay:

Jay Hawk grew up in Chicago and Mexico City where he became bilingual in English and Spanish. After taking formal training as a classical guitarist at prestigious music conservatories in Europe, Jay then embarked on a remarkable journey into the financial markets, cultivating his notable expertise through hands-on experience that began on the Midwest Stock Exchange.

His financial career progressed as he started actively participating in various exchange floor trading activities in the Chicago futures and options pits, where he worked his way up the ladder, serving as a clerk, trader, broker, investor and fund manager. Jay then ran a retail stock brokerage desk and managed funds for large institutional investors, leveraging his discretionary trading skills to yield profitable results for clients.

This ultimately led to Jay holding exchange seats and operating as a market maker on options exchanges in Chicago and San Francisco, initially on the Chicago Board Options Exchange. Jay also played a significant role in the Chicago Mercantile Exchange’s evolution, where he contributed to launching and actively trading the first listed currency futures options. After transitioning to the West Coast, Jay then held a seat and ventured into trading stock options and their underlying stocks on the Pacific Options Exchange.

Jay’s comprehensive understanding of fundamental economic and corporate analysis continues to inform his trading and investment activities and has led to his subsequent success as an expert financial writer. Together with his wife Julie, he co-authored “Stock Trading: A Beginner’s Guide”, “Commodity Trading: A Beginner’s Guide” and “Fundamental Analysis for Financial Markets Traders,” among their published books focusing on financial markets trading, market analysis, and personal finance. 

As an integral member of TheFXperts’ team, Jay now excels in trading forex online for his personal account, mentoring aspiring traders and writing for financial platforms like Benzinga where he specializes in covering topics related to the stock and commodity markets, as well as investing, trading and reviewing online brokers.