06-02-2014, 10:26 AM
(06-02-2014, 08:55 AM)EricL Wrote: I've looked hard at Visa a few times as well but held off because of the low yield and uncertainty about the future of credit cards. I think mobile payments will keep taking a larger share in future years. I think V can continue growing but between paying a high multiple and not getting much in the way of yield I've abstained from buying.
Yes, this exactly. I have not studied V in depth, but the article is essentially urging you to think of V as a growth company. Maybe it will grow earnings in a big way in coming years, and that will help the share price if the multiple stays in the same (high) neighborhood as it is now. But given the headwinds Eric mentioned and the industry it is in, it hardly feels like a no-brainer, as the article implies. I'll just continue to wait for some of my dividend growth favorites to offer better entry opportunities, thanks.