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Additional Reading from MarketBeat Why Mastercard and Visa Are the Definition of Forever StocksAuthor: Jordan Chussler. Publication Date: 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: Have $500? Invest in Elon's AI Masterplan
After finishing the past two years with an average annual gain of nearly 23%, the financials sector has struggled this year. With a year-to-date loss of around 9%, the cohort ranks last among the S&P 500's 11 sectors. But zooming out, the companies that call the sector home have proven to be key components of buy-and-hold investors' portfolios. Analyst Jim Rickards believes gold could climb to $10,000 per ounce or higher in the coming years - and he says investors still have time to position ahead of the move. His top recommendation is a $2 stock he describes as sitting on the largest gold deposit in the world, with an extraction green light potentially arriving April 15. See Jim Rickards' number one gold recommendation for 2026 With high-quality growth stocks increasingly difficult to identify, two legacy companies operating in global payment processing and digital payments continue to produce profit margins that qualify them as "forever stocks." Why Digital Payment and Payment Processors Make for Good Forever Stocks These companies have historically enjoyed higher profit margins than many other industries because of high-volume demand, ease of automation, and technology-driven business models that translate into low marginal costs per transaction. The industry is also poised for strong growth. According to industry analytics firm Grand View Research, the global payment processing solutions market, valued at nearly $48 billion in 2022, is projected to grow at a compound annual growth rate (CAGR) of 14.5% through 2030, reaching nearly $140 billion by the start of the next decade. Grand View also forecasts that the digital payment market, valued at more than $114 billion in 2024, will grow at a 21.4% CAGR through 2030, reaching more than $361 billion. While that degree of growth and attractive gross margins could suggest the space is crowded, two of the biggest names in the industry continue to operate in a near-duopoly, controlling more than 90% of credit card and digital payments processed outside of China. With roots dating back to the mid-1900s, these companies control much of the payment infrastructure, allowing them to influence fees, limit competition, and maintain unusually strong margins. Although firms such as Block (NYSE: XYZ), with its Cash App, and PayPal (NASDAQ: PYPL), with Venmo, pursue disruption, when it comes to "forever stocks" few names fit the bill better than the two below. Mastercard: The $450 Billion Market Cap Company Focusing on Tech Integration Since Michael Miebach took the reins at Mastercard (NYSE: MA) in 2021, management has focused on expanding tech platforms, supporting cross-border commerce, and developing services that help clients reduce fraud, streamline payment flows and leverage payments data for insights. That strategy helped Mastercard deliver record revenue and net income in 2025. Revenue of nearly $33 billion represented a year-over-year (YOY) increase of more than 16%, while net income of nearly $15 billion also rose by more than 16% YOY. Much of that profitability was driven by a 100% gross margin throughout 2025, enabled by tech integrations and a minimal cost of goods sold, which resulted in the company's quarterly gross profit closely matching its quarterly net revenue. For investors, that has translated into consistent earnings outperformance. The last time Mastercard missed on earnings was Q3 2020 following the onset of the COVID-19 pandemic. Since then, the company has recorded 21 consecutive quarterly earnings beats. Most recently, Mastercard reported Q4 2025 EPS of $4.76, a nearly 25% YOY increase. Analysts expect Mastercard's earnings to grow roughly 17% in the year ahead, rising from $15.91 to $18.61 per share. At the same time, the company has shifted from a traditional payment network toward an AI-driven, software-focused enterprise that emphasizes enhanced security, simplified B2B transactions with virtual cards, and agentic AI tools. Icing the cake, Mastercard pays a dividend that, while modest (currently 0.69%), has increased for 13 consecutive years. The firm maintains a sustainable dividend payout ratio of 21.07% and an annualized five-year dividend growth rate of 13.70%. Visa: Evolving and Adapting Since 1958 Visa (NYSE: V) operates a network-based model that enables partner banks and financial institutions to 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 blockchain-based settlement, with the goal of shifting from traditional card-based transactions to more flexible, digital-first experiences. As a result, Visa also reported record revenue and net income in 2025, with revenue of $40 billion—an 11% YOY increase—and net income approaching $20 billion. While Mastercard's string of earnings beats is notable, Visa's consistency stands out: in the past 10 years Visa has not missed on earnings, meeting analysts' expectations twice and beating EPS estimates 38 times. Much of that consistency stems from Visa's strong profitability—its gross profit margin was nearly 83% in 2025, in line with its 10-year average. Like its counterpart, Visa pays a modest dividend, currently yielding 0.87%. Visa's payout ratio is a healthy 25.14%, its annualized five-year dividend growth rate is 14.48%, and the company has raised its payout for 17 consecutive years. Together, Mastercard and Visa offer durable networks, recurring revenue, strong margins and modest but growing dividends—characteristics that make them appealing long-term holdings for buy-and-hold investors seeking exposure to the ongoing digitalization of payments. | 
