If you’re looking to capitalize on the growing cash flow, then you’ll want to check out Visa and Rexford as November rolls around.
Many dividend-oriented investors are looking for high-yielding stocks. But that is only one way of profiting and profiting; another (equally attractive) option is to buy stocks that grow their dividends quickly. Given enough time, this can turn a small yield into a very large yield relative to the purchase price of the stock.
Basically, dividend growth helps you increase the purchasing power of your investment portfolio over time. If that sounds interesting, you want to check it out Visa (V -0.88%) and Company proposal Rexford Industrial Realty (REXR -0.10%) This November.
Visa is almost always available and seems to be cheaper
Visa is a very interesting product right now, filled with conflicting views. And yet, at the end of the day, it seems like a great opportunity to share.
For starters, it is one of the two largest companies in the payment processing space, the other Mastercard. Visa’s network is worldwide, and the card is accepted at almost every store, both physical and online. The company is paid a small fee for every activity it does, which is not much but all of them bring in a lot of money.
Comparing the statement, Visa processed 59.3 billion transactions in the third quarter of 2024, an increase of 10% year-on-year. Mutual funds generated $8.9 billion in revenue, up 10% annually.
Earnings rose 12%, hitting $2.42 per share. It is the power to do many small things very well. It would be difficult for smaller competitors to match that scale and reach. Meanwhile, industry leaders are benefiting from the long-term movement of cash cards, supported by industry growth. online shopping.
So Visa looks good today and seems to have a bright future. This is why stocks are selling almost all the time. And yet cost-to-sales and cost-to-benefit ratio All shares are under five years old, which indicates that the stock is cheap. The bond yield, at just 0.8%, is also near the end of its previous yield. That’s another sign of a cheap price.
But the beauty shines brighter when you add in 10 years of annualized gains of 18% per year. So this is a growing company that looks like an attractive value and a fast growing sector.
The only downside is the low initial yield. But if you’re a long-term investor, the growth potential of that investment can make Visa a great investment option if you have it for the long haul.
Rexford Industrial begins with a high yield
Rexford is Real Estate Investment Trust (REIT), an organization designed to provide income to shareholders. This helps explain why the corporate yield here is so attractive at 3.9%.
That said, there are many REITs out there with high yields. What sets Rexford apart is the division’s growth, with an annual growth rate of 13.5% over the past decade. This is good for any company, but especially attractive for REITs.
The company has achieved this by adopting a very focused approach. It only invests in the industry and in the Southern California market.
For more investors, this can be an increasingly risky proposition. But Southern California is a large, important, and underserved industrial market. Although Rexford has less than 3% of the market, it is a large and well-respected company with a long and successful history of acquisitions and renovations.
Basically, it has good properties in the market where it can raise rents at a fast clip. And it has the growth to buy new products and make changes as it looks to grow its reputation. Add in a 3.9% yield and there’s a lot to like here for those growing mutual funds and those looking for higher yields (I realize that S&P 500 index it’s only giving about 1.2% today).
It’s also worth noting that Rexford’s yield is nearing the end of its history, again indicating that the stock is relatively cheap today.
They are all beautiful right now
Visa and Rexford both look like attractive growth stocks right now. But, because of their very old harvest, they also look noble. The secondary benefit for stock market investors may not last forever. If you have cash to spend in November, you may want to jump on these savings opportunities while they’re still available.
Reuben Gregg Brewer has no responsibility in any of the matters mentioned. The Motley Fool owns and endorses Mastercard, Rexford Industrial Realty, and Visa. The Motley Fool recommends the following: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has disclosure process.