Better Dividend Stock: Mastercard vs. Visa
Here's a look at the two payment processing companies and which stock is better for dividend investors.
Mastercard (NYSE: MA) and Visa (NYSE: V) are incredibly similar payment processing companies with comparable product offerings and overlapping customers. As investments, both stocks have reliable track records and grow their dividends consistently, making them solid choices for investors seeking steady income with minimal risk.
But which one is the better buy right now? While they may seem almost identical, differences in financials, capital allocation strategies, and stock valuations could tip the scales. Let's take a closer look to see which one stands out today.
Before digging into the financials of these two payment giants, it's important to note that Visa has a higher market capitalization at $674 billion compared to Mastercard's $519 billion, meaning it is the larger of the two companies and will have higher overall. Mastercard and Visa recently reported their December 2024 quarterly results, so let's look at their top and bottom lines to get a sense of each company's recent growth.