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More Reading from MarketBeat.com Why Mastercard and Visa Are the Definition of Forever StocksReported by 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: Elon Musk already made me a "wealthy man"
After gaining nearly 23% per year on average over the past two years, 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. Zooming out, though, the companies that make up the sector have proven to be key components of buy-and-hold investors' portfolios. JPMorgan Chase just admitted to abruptly shutting down bank accounts affiliated with Donald Trump post regarding the events of Jan. 6, 2021—if a handful of banking executives can unilaterally lock a billionaire and ex-President out of the banking system over politics, what chance do you and I have? Buried in Federal Reserve Docket No. OP-1670 is the blueprint for FedNow, a centralized hub that gives the Fed real-time visibility into every payment you make and the power to flag or freeze your money with a single keystroke, and over 1,500 banks have already plugged into FedNow. See the 4 steps to Fed-proof your savings now With high-quality growth stocks harder to find, two legacy firms 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 most industries, thanks to high-volume demand, automation, and technology-driven business models that produce low marginal costs per transaction. The industry is also positioned for strong growth. According to 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. Grand View also forecasts that the digital payment market, valued at more than $114 billion in 2024, will post a 21.4% CAGR through 2030, reaching more than $361 billion. Despite that growth and attractive gross margins, 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 reaching back to the mid-1900s, these firms control much of the payments infrastructure, allowing them to influence fees, limit competition, and sustain strong margins. Even with challengers such as Block (NYSE: XYZ), with its Cash App, and PayPal (NASDAQ: PYPL), with Venmo, attempting to disrupt the space, none fit the "forever stock" description 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 to reduce fraud, streamline payment flows and extract insights from payments data. Those efforts helped Mastercard deliver 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 rose by a similar margin. That profitability was driven largely by an effectively 100% gross margin throughout 2025, enabled by tech integrations and minimal cost of goods sold. As a result, the company's quarterly gross profit consistently matched its quarterly net revenue. For investors, that performance has translated into strong earnings results. The last time Mastercard missed on earnings was Q3 2020 following the onset of the COVID-19 pandemic. Since then, the company has produced 21 consecutive quarterly earnings beats. Most recently, the company reported Q4 2025 EPS of $4.76, a nearly 25% year-over-year gain for the quarter. Mastercard's earnings are expected to rise almost 17% in the year ahead, from $15.91 to $18.61 per share. Mastercard has also been shifting from a traditional payment network toward an AI-driven, software-focused company that emphasizes enhanced security, simplified B2B transactions with virtual cards, and agentic AI tools. And while its dividend is modest (currently 0.69%), Mastercard pays and has increased its dividend for 13 consecutive years. The company maintains a sustainable payout ratio of about 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-based model that enables partner banks and other financial institutions to issue branded payment products while Visa focuses on infrastructure, standards and technology integration. Like Mastercard, Visa is rapidly integrating fintech capabilities, prioritizing AI-driven solutions and exploring blockchain-based settlement. The company aims to move beyond traditional card transactions toward more flexible, digital-first experiences by 2026. That strategy helped Visa report record revenue and net income in 2025, with revenue reaching $40 billion—an 11% year-over-year increase—and net income nearing $20 billion. While Mastercard's string of earnings beats is notable, Visa has not missed on earnings in the past 10 years. During 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 reported a gross profit margin near 83% in 2025, consistent with its 10-year average. Like its counterpart, Visa pays a modest dividend, currently yielding about 0.87%. Its payout ratio is roughly 25.14% and its annualized five-year dividend growth rate is about 14.48%. The company has increased its payout for 17 consecutive years. | 
