Is Visa (V) a Smart Buy and Hold Stock in the Tech-Driven Market?

Visa Inc. (NYSE:V) is included among the 10 Best Dividend Stocks to Buy and Hold Forever.

The company is embracing AI to stay ahead, launching its Intelligent Commerce platform that uses AI agents for shopping, digital credentials, and personalized payment insights. It’s working with top tech firms like OpenAI and Microsoft, and has upgraded its Authorize.net platform with AI features. Visa also acquired AI-based fraud detection firm Featurespace to boost security.

On the financial side, Visa Inc. (NYSE:V) is a strong dividend stock with 17 years of consecutive increases and a low 18.5% payout ratio. As a payment processor, it profits from card usage without lending risk, making it a reliable stock in any economy. Over the past decade, the company has delivered an impressive annualized dividend growth rate of 17%. While recent increases have been slightly more modest, the one-, three-, and five-year growth rates all remain above 10%, making Visa a strong pick for dividend growth investors.

On July 29, Visa Inc. (NYSE:V) declared a quarterly dividend of $0.59 per share, which fell in line with its previous dividend. As of July 31, the stock has a dividend yield of 0.68%.

While we acknowledge the potential of V as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.