Trading212 Portfolio- 07/07/20

Updated: Jul 8

Weeks summary


Stock picked: Visa

Ticker: V

Shares added: 0.03

Total shares owned: 0.076

Dividend yield: 0.58%

Payout ratio: 19.78%


Dividends received:

£0.15


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This weeks stock

What does Visa do?

Visa ticker symbol V operates as a payment technology company world wide. The company facilitates the transfer of value and information between consumers, merchants, financial institutions, businesses, strategic partners and government entities. Visa uses Visanet as a processing network, which authorises, clears and settles payment transactions. Visa not only offers card products but also value added services. It provides these services under Visa, Visa Electron, Interlink, V pay and PLUS brands. The company was founded in 1958 and is headquartered in San Francisco.

Fundimentals:

Dividend Yield: 0.58%

Payout ratio: 19.78% (Yahoo finance)

Profit margin: 52.26%

Return on assets: 14.02%

Return on equity: 36.25%%

P/E ratio (price to earnings): 32.89

Adjusted EPS: 532

EPS (Earning per share) Growth: 20%

BETA: 0.92

Cash: $12.15B

Debt: $18.48B

EBITDA: 16.35B


Stock breakdown:


With a quick glance over this stock I can see its a very healthy company, just looking at the profit margin it has a very health margin of 52%, which is quite hard to find in many companies.


Taking a look at the dividend we notice it is very small, but hand in hand, the payout ratio is also very low for this stock.

With such a low payout ratio and a dividend yield of 0.58% its clear to me that this is a very healthy dividend growth stock. With a low payout ratio they can reinvest majority of their profit back into the company but they can also increase their dividend with no worry. The P/E ratio is higher than the normal 20 or under I look for, but Visa is one of those premium stocks.


As we move away from cash stocks like Visa Ticker V and MasterCard ticker MA will become more relied on by the public. With the virus we have seen many companies EPS growth become negative but not with Visa. They are forecasted 20% EPS growth and with a performance outlook positive for the short, medium and long term.


With a Beta of 0.92 this stock tracks fairly closely with the market. The cash to debt with Visa is not a worry for me as they have a fair bit of cash to cover any debt. It seems that Visa is set up for a great future as our cashless payments will only ever increase.


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Dividends received


This week we received 1 dividend this week totalling £0.15

SHAW @ £0.02

KO @ £0.13


Total dividend (Month): £0.34

Total dividend (6 month): £0.34


Amount for charity (6 month): £0.08


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General account summary


With Trading212 enabling the Pie investing Beta we decided to give it a go. We set up 5 pies, each one being a different sector and each one having 10 stocks in. Now we have 50 stocks inside the portfolio. Each dividend received will be reinvested back into the same pie and this will hopefully allow this portfolio to compound faster! Our donation last month was a great achievement as we managed to donate £1.14 to the Royal British Legion. Click here to check out Trading212 Pie features.


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What is:

P/E ratio EPS Payout ratio BETA Dividend


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