Buy Undervalued Visa Amid Inflation-Driven Revenue Gains

2 months ago

Parkev Tatevosian

"Now, the first dividend stock I'm going to discuss is Visa. Now, Visa is one of those businesses that also benefits from increasing inflation because Visa takes a percentage of revenue of every transaction that happens using its network. So, if inflation is increasing and people are paying more for the same amount of things, then Visa's revenue is correlated to that increase in price level. Furthermore, Visa is trading at a market price of $320 and the intrinsic value per share is $488 as calculated by my proprietary discounted cash flow model."

The speaker highlights Visa as an undervalued dividend stock that benefits from inflation due to its revenue model, and supports this view by noting that its current market price of $320 is well below its intrinsic value of $488. The commentary underlines the competitive dynamics in the industry and the stock's ability to protect portfolios during market selloffs.

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