I uncover a high-quality dividend growth stock that appears to be undervalued each week for Daily Trade Alert, which is a site that focuses on dividend growth investing, stocks, and unique investment opportunities. I’ve been writing for them for years now, and they’re just great over there. Each week, I publish an excerpt of my work, when it’s fresh off the press. That way, you readers are given the opportunity to check it out. The content is free, just like here at Mr. Free At 33. I hope you enjoy!
Retirement.
The word conjures images of golf, travel, and relaxation.
But I think that’s the case because “retirement” is typically thought of as the capstone of a lengthy career, as one sails into the sunset.
One is a bit worn out and older. And so easy-going activities is par for the course.
However, as someone who became financially free at 33, I believe retirement is becoming a totally different concept to a lot of young people.
First, the idea that one can just work for the same firm for 30 or 40 years and then collect a pension and a gold watch is pretty much non-existent.
Instead, we’re in a gig economy, where technology and economic changes have totally reshaped the dynamics of work.
But whereas some might look at this as a setback, I see it all as an incredible opportunity.
Image courtesy of: Stuart Miles at FreeDigitalPhotos.net.
Jason, love Visa. Do you think the 20% dividend growth over the first 10 years is possible? Just curious how much of that would be divided between earnings growth and payout ratio expansion?
Jason,
Their dividend growth will depend both on underlying earnings growth and the company’s predisposition to payout ratio expansion. Based on what I’ve seen thus far, both are favorable.
S&P Capital’s prediction is laid out in the article. If Visa comes anywhere near that, ~20% dividend growth for the foreseeable future is not only possible but likely. The acquisition of Visa Europe bolsters that case over the long run. However, the stock still looks really good here even under slightly less optimistic scenarios. They’d have to really stumble before I’d start to see this as a poor long-term investment.
Cheers!