How to buy Visa stock (V)—6 steps to invest
With over 4.5 billion cards1 in over 200 countries, there's a good chance you have one of Visa's products in your wallet. This payment processing giant has become the primary way countless individuals and businesses move money in the modern world. But, Visa doesn't offer its services for free. With every tap, swipe or transfer, this company earns fees, which has made it one of America's most profitable companies.
For investors looking to gain exposure to the global payments space, Visa is an obvious name to consider. Take a closer look at the benefits and drawbacks of owning Visa shares and the basics on how to buy Visa stock.
How to buy Visa stock
Visa is so influential that it's included in the S&P 500 and the Dow Jones Industrial Average. So, whatever brokerage you're most interested in using, there's a good chance they'll have a way to put Visa shares in your account.
- 1.
Choose a stock trading platform: It's rare for a brokerage offering US-based stocks not to have Visa shares, but always double check a platform's equity offerings before signing up. Also, compare core features like a broker's history, minimum deposit and fee schedule to decide which site to sign up for.
- 2.
Deposit money: After you have a brokerage account, find a way to transfer money from your bank or another accepted payment method. ACH transfers from a linked bank often have the cheapest transfer fees, but there may also be options for wire transfers, debit card transactions or integrations with fintech apps.
- 3.
Find Visa stock: Use the ticker "V" in a brokerage's search tab to find Visa's stock price chart. After entering this symbol, you should see Visa's current price and an option to buy or sell shares.
- 4.
Choose how many V shares you want: Some brokerage platforms require you to purchase at least one share of Visa, but others may let you buy fractions of a share. Either way, you need to enter how much Visa you want to add to your portfolio before moving to the next step.
- 5.
Specify a buy order: If you're more concerned with speed, you could use a "market order" to buy Visa shares regardless of price volatility. Otherwise, you could use a "limit order" to specify the price per share you want and wait till Visa hits this level.
- 6.
Review fees and confirm: Before executing your trade, review any fees your broker charges for this service. Once the V shares appear in your account, you can monitor their performance and decide how to adjust your portfolio.
Top brokers for stock investing
If you’re an active investor or options trader looking for a way to save money on trades, you may want to check out discount broker tastytrade. The online service has some of the lowest prices around.
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About Visa Inc.
Visa's origins date back to 1958, when Bank of America launched its revolutionary consumer credit card program called "BankAmericard2" for American customers. This service expanded internationally in 1974 and quickly rebranded to Visa to reflect its new global identity. In 2007, a group of regional businesses merged to form today's Visa Inc., which is the company investors get to buy on the stock market ever since its IPO in 2008. Although Visa is still best known for its credit and debit cards, it continues to expand its digital payment infrastructure and integrate with cutting-edge solutions like blockchain3 and AI4.
Is Visa a good stock to buy?
There's no denying Visa's sterling performance since its debut on the stock market. Visa's stock got off to a strong start after raising over $17 billion5 on its IPO day. Back in 2008, one share of Visa cost $446, and it has since gained 627% to close 2024 with a share price of approximately $319 (not including stock splits along the way). Over the past 10 years, Visa's average compound annual growth rate (CAGR) was roughly 17%7, which puts it slightly higher than the S&P 500. As a cherry on top, Visa investors get a quarterly dividend (currently at $2.36 per share per year8).
While all of these metrics look fantastic, keep in mind Visa's growth rate may struggle to ramp up now that it's a mature business. Typically, investors who are more interested in a secure investment that offers reliable yield and passive income are best suited for V shares.
Pros and cons of buying Visa stock
Pros
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Dominance in global payments: Visa isn't the only payment solution, but it's unquestionably one of the biggest names in this category. Visa's well-established and extensive network — plus its brand recognition — create a significant competitive advantage.
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Robust financials: From revenue9 to transaction volumes to income, Visa continues to post solid gains in quarterly reports, cementing its status as a financially secure company.
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Reliable dividends: Visa has been rewarding shareholders with dividends10 since 2008, and it has a history of increasing this rate each year.
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Share buybacks: Another way Visa rewards shareholders is by buying billions11 worth of its stock. The company frequently announces share buyback programs to help make shares on the market more valuable.
Cons
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Increasing competition: Despite Visa's wide moat, there are many challengers in the payments space. From traditional rivals, like Mastercard, to up-in-coming options, such as Apple Pay and Bitcoin, Visa has to continually adapt to maintain its edge.
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Sensitive to consumer and travel demand: Visa's revenues are linked to consumer spending and the volume of cross-border transactions. Economic downturns, travel restrictions or low consumer confidence can trigger declining transaction volumes and hurt Visa's bottom line.
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Premium valuation: As a premier payment brand, Visa's stock typically trades at a premium to peers and benchmark indexes. This high price-to-earnings (P/E) can make it more difficult for Visa's stock to rise as much versus value stocks.
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Technological and cybersecurity hurdles: Visa's increased reliance on a digital payment infrastructure means It has high cybersecurity expenses. On top of these costs, Visa is at risk of severe reputational damage should hackers manage to break into its system.
FAQs
Eric Esposito is a freelance contributor on MoneyWise with an interest in financial markets, investing, and trading. In addition to MoneyWise, Eric’s work can be found on financial publications such as WallStreetZen and CoinDesk. When not researching the latest stock market trends, Eric enjoys biking, walking his dog, and spending time with family in Central Florida. Eric holds a BA in English from Quinnipiac University.
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