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Visa (WBO:VISA) 5-Year Yield-on-Cost % : 1.47 (As of Apr. 27, 2024)


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What is Visa 5-Year Yield-on-Cost %?

Visa's yield on cost for the quarter that ended in Mar. 2024 was 1.47.


The historical rank and industry rank for Visa's 5-Year Yield-on-Cost % or its related term are showing as below:

WBO:VISA' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.05   Med: 1.32   Max: 1.76
Current: 1.47


During the past 13 years, Visa's highest Yield on Cost was 1.76. The lowest was 1.05. And the median was 1.32.


WBO:VISA's 5-Year Yield-on-Cost % is ranked worse than
78.64% of 220 companies
in the Credit Services industry
Industry Median: 4.265 vs WBO:VISA: 1.47

Competitive Comparison of Visa's 5-Year Yield-on-Cost %

For the Credit Services subindustry, Visa's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Visa's 5-Year Yield-on-Cost % Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Visa's 5-Year Yield-on-Cost % distribution charts can be found below:

* The bar in red indicates where Visa's 5-Year Yield-on-Cost % falls into.



Visa 5-Year Yield-on-Cost % Calculation

Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.

Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.

Therefore, Yield-on-Cost of Visa is calculated as

Yield-on-Cost=Dividend Yield %*(1+Dividend Growth Rate)^5

Visa  (WBO:VISA) 5-Year Yield-on-Cost % Explanation

Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.


Visa 5-Year Yield-on-Cost % Related Terms

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Visa (WBO:VISA) Business Description

Address
P.O. Box 8999, San Francisco, CA, USA, 94128-8999
Visa is the largest payment processor in the world. In fiscal 2022, it processed over $14 trillion in total volume. Visa operates in over 200 countries and processes transactions in over 160 currencies. Its systems are capable of processing over 65,000 transactions per second.

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