Do you remember early March? When everyone thought banks would collapse and the U.S. government would default on its debt?
Stocks were cheap back then.
And hearty congratulations to anyone who bought the dip!
Stocks aren’t as cheap now. And the market’s recent rally has pushed prices even higher.
Between this, Christmas shopping, and end-of-year expenses, I’m cutting back on the stock purchases to conserve my investible income. But, there are two companies I’d like to buy. As well as a high-reward alternative asset I want to fund.
Keep reading if you’re curious about these three investments...
1. Visa Inc. ($V)
Visa is the “toll road” for money.
When you buy something through the VisaNet payment network, Visa gets a percentage of that transaction.
This is a bet on cashless transactions and online shopping.
Visa has benefited greatly from the global shift towards cards and digital wallets. And Visa stock has crushed the S&P 500 for the past decade. The company has delivered a 10-year average annual total return of 18.41%. And, has compounded its dividend at a rate of 16.27% for the past 5 years.
Despite this rapid growth, Visa stock remains reasonably valued.
The company currently trades at a price to earnings ratio of 25.73. Which is a little high, but not that much higher than the S&P 500.
The only downside with this stock is its low starting yield of 0.82%.
Because this is a premium stock and a low-yielder, I’m doing something a little different. I’m buying half my starting position at the current price. And then setting a limit order in the $230 range to pick-up the other half, if Visa stock faces a market correction.