Want to be exposed to fintech? Also want to collect safe, growing, totally passive dividends? Wondering which are the top fintech dividend growth stocks to consider buying? Fintech - or financial technology - is huge. And it's growing. This is something that investors have to be a part of. But what if you want to have your cake and eat it, too?
What if you want to collect safe, growing passive dividend income you benefit from growing business profits and rising stock prices? Well, I have great news for you. There are some very high-quality dividend growth stocks out there that are directly exposed to fintech. These are world-class companies. Some of the best businesses in the world, in fact. They're making a ton of money and killing the market in terms of performance. They pay safe, growing passive dividend income. Today, I want to tell you about three fintech dividend growth stocks that you should consider putting in your portfolio.
The first fintech dividend growth stock to consider for your portfolio is Apple Inc. - stock ticker AAPL. Ever heard of Apple Pay? Maybe you've used it yourself? Well, what do you think that is? That's fintech at its finest. Apple is such a well-run business that is so intelligent. They've got this installed base of hundreds of millions of phones, and Apple is monetizing that base in so many creative ways - including payments. In my 10+ years of investing experience, I've almost never seen this stock at a level I'd call "cheap". Look, you get what you pay for. You don't get a diamond for the price of cubic zirconia. And Apple is a diamond of a business. The P/E ratio of 30 is on the high end of what I'd personally be willing to pay for shares, but a dip in this name should be looked at as a long-term opportunity.
The second fintech dividend growth stock to consider is Mastercard Inc. - stock ticker MA. This is one of the biggest credit card businesses on the planet, with well over 200 million cardholders. Physical money was starting to go the way of the dodo before the pandemic. Now? People don't want anything to do with the stuff. The adoption of digital payments is now. And that shouldn't be a surprise. Paying digitally is easier, safer, and faster than paying with cash. It's also more rewarding, literally and figuratively, as customers earn points and rewards on credit card spending that isn't possible with cash payments. If you're a Mastercard user and shareholder, you earn. Even better. In regard to the dividend, like Apple, Mastercard stock isn't a huge income producer. The stock only yields 0.5%. But this compounder is the kind of stock that puts the in dividend growth investing - they've increased their dividend for 10 consecutive years, with a - get this - 10-year dividend growth rate of 38.9%.
Last but not least, let's discuss Visa Inc. - stock ticker V. Here we have the king of the industry, with $8.8 trillion dollars in payments volume last year - during a pandemic. There are 3.3 billion Visa credit cards in circulation. That's almost half the global population. Visa doesn't just do fintech. They do it big. And in an industry that is starting to really take off, they're poised to benefit from the lion's share of that growth. It's absolutely crushed the S&P 500. And the crazy thing is, in a lot of ways, Visa is just getting warmed up. They went public in 2008. We're talking less than 15 years ago. And digital payments? The sky is the limit. This stock isn't cheap. But it didn't look cheap when I personally bought shares in 2014, either. Yet it's up massively since then. Visa isn't low-quality, high-yield junk. It's a world-class business that a high valuation. The current P/E ratio of 56 is arguably a bit high, but Visa could be a crown jewel of a dividend growth stock portfolio. So keep an eye out for dips in this name if you want to get in at a lower valuation.
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