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Just For You Why Mastercard and Visa Are the Definition of Forever StocksAuthored by Jordan Chussler. Posted: 3/14/2026. 
Key Points - The financials sector has lagged the S&P 500 this year, but two payment processing giants continue to deliver the kind of margins and earnings consistency that define long-term holdings.
- Despite recent sector-wide struggles, Visa and Mastercard function as a veritable duopoly, controlling over 90% of payments outside of China.
- Visa hasn't missed on earnings in 10 years, while Mastercard has secured 21 consecutive quarterly beats.
- Special Report: Elon's "Hidden" Company
After averaging nearly 23% annually over the past two years, the financials sector has struggled in 2026. With a year-to-date loss of around 9%, the cohort ranks last among the S&P 500's 11 sectors. Still, when you zoom out, many companies in the sector remain foundational holdings for buy-and-hold investors. As high-quality growth stocks become harder to find, two legacy firms in global payment processing and digital payments continue to deliver profit margins and durability that qualify them as potential "forever stocks." Why Digital Payment and Payment Processors Make for Good Forever Stocks Payment networks typically enjoy higher profit margins than many other industries. Their high-volume demand, extensive automation and technology-driven models translate into very low marginal costs per transaction. The industry is also positioned for strong expansion. Industry analytics firm Grand View Research estimates the global payment processing solutions market—valued at nearly $48 billion in 2022—will grow at a compound annual growth rate (CAGR) of 14.5% through 2030, approaching $140 billion. Grand View similarly forecasts the digital payment market, which was valued at more than $114 billion in 2024, will grow at a 21.4% CAGR through 2030 to exceed $361 billion. Despite that growth and attractive margins, two dominant players still control a vast share of credit card and digital payments processed outside China—effectively operating as a duopoly. With roots stretching back to the mid-1900s, they control much of the underlying infrastructure, which helps them set fees, limit competition and sustain strong margins. While competitors such as Block (NYSE: XYZ), with Cash App, and PayPal (NASDAQ: PYPL), with Venmo, pursue disruption, few firms fit the "forever stock" profile better than the two below. Mastercard: The $450 Billion Market Cap Company Focusing on Tech Integration Since Michael Miebach became CEO of Mastercard (NYSE: MA) in 2021, management has emphasized expanding tech platforms, supporting cross-border commerce and building services to reduce fraud, streamline payment flows and unlock payments data for insights. That strategy helped Mastercard post record revenue and net income in 2025. Revenue of nearly $33 billion represented a year-over-year gain of more than 16%, while net income of nearly $15 billion also rose over 16% year over year. Much of that profitability reflects Mastercard's technology-heavy model and minimal cost of goods sold: the company reported a gross margin that effectively matched its net revenue in 2025, driven by its platform-centric business. For investors, the results have translated into consistent earnings performance. Since a miss in Q3 2020 after the COVID-19 outbreak, Mastercard has delivered 21 consecutive quarterly earnings beats. Most recently, Mastercard reported Q4 2025 EPS of $4.76, a nearly 25% year-over-year increase. Analysts expect earnings to grow about 17% next year, from $15.91 to $18.61 per share. Mastercard is also shifting from a traditional payments network toward a software- and AI-driven enterprise focused on enhanced security, simplified B2B flows with virtual cards and agentic AI tools. Additionally, Mastercard pays a dividend. Though the current yield is modest (about 0.69%), the company has increased its payout for 13 consecutive years, maintains a sustainable payout ratio (around 21.07%) and has an annualized five-year dividend growth rate near 13.70%. Visa: Evolving and Adapting Since 1958 Visa (NYSE: V) operates a network model that lets partner banks issue branded payment products while Visa focuses on infrastructure, standards and technology integration. Like Mastercard, Visa is integrating fintech capabilities, emphasizing AI-driven solutions and experimenting with blockchain-based settlement. The aim is to move beyond traditional card transactions toward more flexible, digital-first experiences. Those efforts helped Visa post record revenue and net income in 2025: revenue reached $40 billion (up about 11% year over year) and net income approached $20 billion. Visa's consistency is notable. Over the past decade it hasn't missed earnings expectations—during that stretch it has met forecasts twice and beaten EPS estimates 38 times. That track record aligns with Visa's strong profitability: the company reported a gross profit margin near 83% in 2025, consistent with its long-term average. Like Mastercard, Visa pays a modest dividend (yielding about 0.87%). Its payout ratio is healthy (roughly 25.14%), the annualized five-year dividend growth rate is about 14.48%, and the company has increased its payout for 17 consecutive years. | 
