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Today's Exclusive News Why Mastercard and Visa Are the Definition of Forever StocksSubmitted by Jordan Chussler. Published: 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: This Could Turn $100 into $100,000
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. Zooming out, however, shows that many companies in the sector remain central holdings for buy-and-hold investors. A $2 gold stock is said to quietly control what may be the largest gold deposit in the world - worth nearly $1 trillion. According to Jim Rickards, an announcement is expected around April 15 that could bring this historic discovery into public view. See the full details on this $2 gold stock before April 15 As high-quality growth stocks become harder to find, two legacy companies in the global payment-processing and digital-payments markets continue to deliver profit margins and business characteristics that make them attractive long-term holdings. 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 steady high-volume demand, extensive automation and technology-driven models that keep marginal costs per transaction low. The industry is also positioned for strong growth. According to 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. Grand View also forecasts the digital payment market, valued at more than $114 billion in 2024, will expand at a 21.4% CAGR through 2030 to more than $361 billion. That growth, combined with attractive gross margins, could suggest the space is crowded — yet two of the biggest names continue to operate in a near-duopoly, processing more than 90% of credit card and digital payments outside of China. With roots stretching back to the mid-1900s, these firms control much of the payment infrastructure, enabling them to set fees, limit competition and sustain strong margins. While companies such as Block (NYSE: XYZ) with Cash App and PayPal (NASDAQ: PYPL) with Venmo pursue disruptive strategies, two incumbents stand out as quintessential long-term holdings. Mastercard: The $450 Billion Market Cap Company Focusing on Tech Integration Since Michael Miebach became CEO of Mastercard (NYSE: MA) in 2021, management has focused on expanding technology platforms, supporting cross-border commerce and building services that reduce fraud, streamline payment flows and turn payments data into insights. That strategy helped Mastercard post 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 over 16%. Much of that profitability came from an effective 100% gross margin throughout 2025, driven by tech integrations and a minimal cost of goods sold — resulting in quarterly gross profit that equaled quarterly net revenue. For investors, that has translated into a strong run of earnings performance. The last time Mastercard missed on earnings was Q3 2020 after 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% year-over-year increase from the same quarter a year earlier. Analysts expect earnings to grow roughly 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 enterprise, emphasizing enhanced security, simplified B2B transactions with virtual cards and agentic AI tools. Adding to the appeal, Mastercard pays a dividend. While the yield is modest (currently about 0.69%), the company has increased its payout for 13 consecutive years, maintains a sustainable dividend payout ratio of roughly 21%, and has an annualized five-year dividend growth rate near 13.7%. 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 rapidly integrating fintech innovations, focusing on AI-driven solutions and blockchain-based settlement, with the goal of moving from traditional card-based transactions to more flexible, digital-first experiences by 2026. That strategy helped Visa report record revenue and net income in 2025. Revenue reached $40 billion, an 11% year-over-year increase, while net income was nearly $20 billion. Visa's consistency on the earnings front is notable. The company has not missed earnings in the past 10 years; over that span it met analysts' expectations twice and beat EPS forecasts 38 times. Much of Visa's resilience reflects its strong margins — the company posted a near-83% gross profit margin in 2025, close to its 10-year average. Like Mastercard, Visa also pays a modest dividend, currently yielding about 0.87%. Its payout ratio is healthy at roughly 25%, the annualized five-year dividend growth rate is about 14.5%, and the company has increased its dividend for 17 consecutive years. | 
