Visa (V) has underperformed the broader market in the past year, facing regulatory challenges and economic concerns. Investors worried that a spending slowdown would hurt payment volume and revenue. However, Visa's stock recently increased after its Q2 2026 results. Despite this, Visa's stock is still down 6% over the last 12 months, and there's significant potential for growth. Firstly, economic concerns may be overstated. Visa's latest earnings showed a 17% year-over-year jump in net revenue to $11.2 billion, with adjusted earnings per share up 20%. Visa's revenue growth is the fastest in over three years. Inflation may benefit Visa, as it charges fees on transactions. Higher prices can lead to higher fees. Secondly, Visa's dividend program is another reason it's a great pick. The company has increased its payouts every year since it initiated them in 2008.
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