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Additional Reading from MarketBeat Why Mastercard and Visa Are the Definition of Forever StocksBy Jordan Chussler. Article 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 two consecutive years with an average annual gain of nearly 23%, the financials sector has struggled this year. With a year-to-date loss near 9%, it ranks last among the S&P 500's 11 sectors. Zooming out, the companies in the sector have proven to be key components of buy-and-hold portfolios. Last century, wars were fought over oil. The 21st century will be won or lost on rare earth elements, the digital gunpowder of modern dominance powering robotics, AI data centers, and the F-35 Lightning II, which requires 920 lbs. of rare earths just to stay in the sky. In 2024, 97% of the 1.2 million drones produced for the Ukraine conflict relied on heavy rare earth magnets processed in China, and nearly all global refining equipment is built, coded, and controlled overseas—a dangerous chokepoint that could be cut at any time. One domestic rare earth company is working to bring that leverage back to North America with a proprietary tech stack that's 100% independent of Chinese equipment, paired with an AI-optimized refining engine to deliver 99.5% purity metals. See how this NASDAQ company is building an uncuttable supply chain With high-quality growth stocks harder to find, two legacy companies 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 businesses have historically delivered higher profit margins than many industries because high-volume demand, easy automation, and technology-driven models produce low marginal costs per transaction. The industry is also positioned 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. Despite that growth and attractive gross margins, two companies operate in a near-duopoly, processing over 90% of credit card and digital payments outside China. With roots stretching back to the mid-1900s, they control payments infrastructure, enabling them to set fees, limit competition, and sustain strong margins. Although companies such as Block (NYSE: XYZ) with Cash App and PayPal (NASDAQ: PYPL) with Venmo aim to disrupt the space, the two companies below remain the best examples of "forever stocks." Mastercard: The $450 Billion Market Cap Company Focusing on Tech Integration Since Michael Miebach became CEO in 2021, Mastercard (NYSE: MA) has focused on expanding tech platforms, supporting cross-border commerce, and offering services to reduce fraud, streamline payment flows, and leverage payment data for insights. In 2025, Mastercard posted record revenue and net income. Revenue of nearly $33 billion represented a year-over-year (YOY) increase of more than 16%, and net income of nearly $15 billion rose by a similar margin. Profitability was driven in large part by a reported 100% gross margin in 2025—enabled by tech integrations and minimal cost of goods sold—so quarterly gross profit closely matched quarterly net revenue. For investors, that has produced rewarding results: Mastercard's last earnings miss was in Q3 2020 after the onset of the COVID-19 pandemic; since then it has delivered 21 consecutive quarterly earnings beats. Most recently, the company reported Q4 2025 EPS of $4.76, up nearly 25% YOY. Analysts expect earnings per share to rise about 17% in the year ahead, from $15.91 to $18.61. Mastercard has shifted from a traditional payment network to an AI-driven, software-focused enterprise emphasizing enhanced security, simplified B2B transactions with virtual cards, and agentic AI tools. Mastercard also pays a modest dividend (current yield ~0.69%) that has increased for 13 consecutive years. The company's dividend payout ratio is about 21.07%, and its annualized five-year dividend growth rate is 13.70% (source). Visa: Evolving and Adapting Since 1958 Visa (NYSE: V) operates a network-based 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—AI-driven solutions and blockchain-based settlement—with the goal of shifting from traditional card 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% YOY increase—and net income approached $20 billion. Visa hasn't missed earnings in the past 10 years: during that span it met expectations twice and beat EPS estimates 38 times (source). Much of that consistency stems from a near-83% gross profit margin in 2025, which is in line with Visa's 10-year average (source). Visa pays a modest dividend (current yield ~0.87%). Its payout ratio is about 25.14%, and its annualized five-year dividend growth rate is 14.48%. Visa has raised its dividend for 17 consecutive years (source). | 
