What’s better than receiving dividends every quarter? Well receiving a larger dividend of course! Most companies I own have a track record of raising their dividend each and every year at a rate higher than inflation. Visa is no different.
Man, I sure love some Visa! This company has been one of the best performers in my portfolio. They have a huge tailwind from people switching from cash around the globe. This is one reason why they are my 2nd largest position.
Visa announced their usual October dividend increase on Wednesday. What was unusual was that it’s the 2nd increase this year. That’s right, Visa increased the dividend in January following an increase just 3 months prior from last October. I’m guessing this was due to the new tax savings. Some other companies did multiple hikes like MO, my largest position.
The new dividend is $1.00 from $.84 (19% increase) payable 12/4/18 to shareholders of record as of 11/16/18.
I currently own 407 shares of V (11% portfolio weight, but 2.2% dividend weight which is up from 1.86% prior to dividend hike) and this will increase my yearly dividends by $65.04, that’s over $5/month just for being a loyal shareholder!