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Additional Reading from MarketBeat.com Why Mastercard and Visa Are the Definition of Forever StocksSubmitted by Jordan Chussler. Published: 3/14/2026. 
Article Highlights - 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.
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 about 9%, it ranks last among the S&P 500's 11 sectors. Viewed longer term, many companies in the sector remain key components of buy-and-hold investors' portfolios. In 1934, the government executed a legal maneuver that transferred billions in wealth overnight—most Americans had no idea it was coming, a small group who saw it early walked away wealthy, and everyone else paid for it. Trump has the same legal authority today, advisors close to the administration believe he's considering using it, and if he does, the transfer happens fast with the window to be on the right side of it already closing. Get the free report on how to position yourself now With high-quality growth stocks increasingly difficult to find, two legacy companies in global payment processing and digital payments continue to generate profit margins that make them strong candidates for "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, thanks to high-volume demand, automation and technology-driven business models that translate into low marginal costs per transaction. The industry is also poised for robust 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. Although that level of growth and attractive gross margins might suggest the space is crowded, two of the biggest names 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 firms control critical payment infrastructure, allowing them to set fees, limit competition and sustain very strong margins. Despite competitors such as Block (NYSE: XYZ), with its Cash App, and PayPal (NASDAQ: PYPL), with Venmo, none fit the "forever stock" profile better than the following two. 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 developing services that help clients reduce fraud, simplify payment flows and derive insights from payments data. Under that strategy, Mastercard reported record revenue and net income in 2025. Revenue of nearly $33 billion represented a year-over-year increase of more than 16%, while net income of nearly $15 billion also rose by more than 16%. That profitability was driven largely by an effectively 100% gross margin in 2025, enabled by tech integrations and minimal cost of goods sold, which left quarterly gross profit closely matching quarterly net revenue. For investors, that has translated into consistently strong earnings. The last time Mastercard missed on earnings was Q3 2020 following the onset of the COVID-19 pandemic; since then, the company has posted 21 consecutive quarterly earnings beats. Most recently, Mastercard reported Q4 2025 EPS of $4.76, a nearly 25% year-over-year increase. Analysts expect EPS to grow roughly 17% over the next year, from $15.91 to $18.61 per share. Mastercard has also shifted from a traditional payment network toward an AI-driven, software-focused enterprise that emphasizes enhanced security, simplified B2B transactions with virtual cards and advanced AI tools. Icing the cake, Mastercard pays a dividend that, while not known for a high yield (currently about 0.69%), has increased for 13 consecutive years. The company maintains a sustainable payout ratio of roughly 21.07% and 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 and financial institutions issue branded payment products while Visa focuses on infrastructure, standards and technology integration. Like Mastercard, Visa is integrating fintech innovations, emphasizing AI-driven solutions and blockchain-based settlement, with the aim of moving from traditional card transactions to more flexible, digital-first experiences. That strategy helped Visa report record revenue and net income in 2025, with revenue of about $40 billion—an 11% year-over-year increase—and net income approaching $20 billion. While Mastercard's run of earnings beats is notable, Visa has not missed earnings once in the past 10 years. Over that period, the company met analyst expectations twice and beat EPS estimates 38 times. Much of Visa's consistency stems from its strong profitability: the company posted a near 83% gross profit margin in 2025, in line with its 10-year average. Like its counterpart, Visa pays a modest dividend (currently around 0.87%). Its payout ratio is a healthy ~25.14%, and its annualized five-year dividend growth rate is about 14.48%. Visa has increased its dividend for 17 consecutive years.
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