Fintech
3 Fintech Stocks That Pay Dividends and That Pay Dividends
The financial technology or fintech sector looks promising this year. Fintech companies use technology to offer money management solutions. They seek to simplify banking, investing and lending and their relevance has grown with technological advancements. Several companies that pay dividends fintech stocks have emerged as strong industry players with solid positive momentum.
The future of the sector looks bright and a rate cut could help the stock rally. As we move into digital payments, these three companies are poised to take full advantage. At the same time, they are similar companies and are trying to build their league. To add to the sweetness, these stocks also pay dividends. So if you are looking for capital growth and passive income, here are three interesting fintech stocks to add to your portfolio.
Seen (V)
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A top-tier fintech stock that I’ve been banging my fists on Visa (London share:AND) for a while now. The company serves 100 million merchants and has 4 billion cards in circulation. We all have at least one car. We all have at least one card issuer in the top four. Visa earns a fee every time you swipe your card to pay for a purchase. That’s how it makes money and keeps operating costs low.
In the recently announced quarterly resultsVisa saw a steady 10% increase in net revenue to $8.9 billion, and transactions processed jumped 10% year over year. Its business metrics remained steady, with a 7% year-over-year jump in payments volume and a 14% jump in cross-border volume.
Net income for the quarter was $2.40 per share, up 20%. It was a rare revenue failure for the company, driven by low consumer spending in the low-income segment. However, Visa is a long-term play worth holding for years.
As we transition away from cash and toward card usage, Visa will benefit. V stock is down 6% this week on revenue shortfall. Trading at $254, it is approaching its 52-week low of $227. The stock has a 0.82% dividend yield and has raised its dividend payments for 15 consecutive years. Visa is a buy on the dip.
American Express (AXP)
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While all three of the dividend-paying fintech stocks mentioned here are somewhat similar, American Express (London share:ASCENT) is a little different. It is a credit card company that can issue its own cards, while the other two companies will issue cards that are linked to a bank, such as Standard Chartered or Barclays. American Express has been successful in attracting new users; about 60% of new accounts were opened by Gen Z and Millennials.
The company has recently Results Announced and missed revenue estimates for the quarter. It reported revenue of $16.33 billion, up 9% year over year, and EPS of $3.49. After reporting better-than-expected profit, management raised full-year profit expectations to $13.30 and $13.80 per share.
At $240, the stock is up 27% YTD and 44% over the past 12 months. Compared to the other two companies mentioned here, American Express has had an excellent 2024. Its 1.16% dividend yield is also the highest among the three companies discussed here.
The company has enough cash to increase its dividend in the coming quarters and has increased its dividend for three consecutive years. Earlier this year, it announced a 17% dividend increase. A lot is going in American Express’s favor and I think it is one of the best financial securities to possess.
Mastercard (MA)
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Visa’s Rival MasterCard (London share:BUT) is another card issuer that makes money every time a card is swiped. This company stands to benefit from increased consumer spending and the shift to digital payments. MA shares are up 2% YTD and are trading at $432 at the time of writing. They are up 7% in the last 12 months and are looking to expand their market share with new offerings.
In the previous quarterThe company saw a 10% YOY increase in net revenue to $6.3 billion, and cross-border volume increased 18%. The company is constantly competing with Visa for customers, and management has plans to expand. It has partnered with the African Development Bank to expand digital access for African individuals and businesses.
The growing preference for digital payments will continue to change consumer spending habits, putting Mastercard in a favorable position in the industry. It could see double-digit growth in the coming years.
Although Mastercard trades at nearly double the price of Visa, the stock could be a good buy if you have a long-term view. It also has a 0.61% dividend yield and has raised its dividend for 13 consecutive years. Mastercard is a low-risk, reliable stock to add to your portfolio.
As of the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any position in the securities mentioned in this article. The views expressed in this article are those of the author, subject to InvestorPlace.com policies Publishing Guidelines.
As of the date of publication, the responsible editor did not hold (either directly or indirectly) any position in the securities mentioned in this article.
Vandita Jadeja is a CPA and freelance financial copywriter who loves reading and writing about stocks. She believes in buying and holding for long-term gains. Her knowledge of words and numbers helps her write clear analysis on stocks.