Happy Monday!

I hope everyone is enjoying Memorial Day Weekend with family and friends.

Even though the markets are closed Monday, we still have a big week of investing in front of us!

Inside today’s edition, we take a look at my favorite dividend growth stock, NVIDIA’s earnings, notable dividend increases, and so much more!

Let’s do this!

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THE KEY STORY

Visa: My Favorite Dividend Growth Stock

My favorite dividend growth stock is Visa, the payment technology company. This is my 6th largest holding overall and 5th largest investment in my dividend account (9%).

So, what do I like about the Visa? Here are a few initial thoughts that come to mind:

1. #1 digital payment company in the world with massive network effects, as they are accepted globally.

2. Highly scalable business that does not take a lot of additional capital to add new transactions and volume to the network.

3. High margin business as incremental cost for a new transaction (and receiving a fee) is near zero. This is represented by Visa having nearly 80% gross margins, 64% operating margins, and 52% net margins.

From a stock financial perspective, Visa is trading at ~$275 a share, ~550B market cap, a P/E of 30, and an annual dividend of $2.08 per share. The dividend has grown at a high rate every year since it’s 2008 IPO. Visa stock has a dividend compound annual growth rate (CAGR) of nearly 18% over the last 10 years. The most recent dividend increase was 15.56%.

The current dividend yield of 0.76% is low for those looking for high income now, but the long-term growth prospects look fantastic. I focus on total return and the potential for high capital gains and dividend growth keep me excited about Visa.

Do you want to hear more of my thoughts on Visa? Make sure to check out this week’s Dividend Data video (thumbnail above) where I give a full breakdown on the Company as well as this video for a few months back where I go through the Company’s history.

-Zach

THE VIDEO

NVIDA CEO Jensen Huang on Yahoo Finance

NVIDIA just keeps on delivering! After releasing strong Q1 earnings beating on both top and bottom line expectations with $26.04B in revenue and $6.12 adj. EPS. (versus expected of $24.65B & $5.59), $NVDA CEO Jensen Huang joined Yahoo Finance in a more than 12 minute interview.

In the conversation Jensen discussed a variety of different topics including Blackwell ($NVDA’s next generation chip), generative AI, Tesla & autonomous driving, and so much more!

Make sure to check out the full conversation above!

NOTABLE DIVIDEND INCREASES

NVIDIA, M&T Bank, Ralph Lauren

• $NVDA — NVIDIA declares $0.10/share quarterly dividend, 150% increase from prior dividend of $0.04.

• $RL — Ralph Lauren declares $0.825/share quarterly dividend, 10% increase from prior dividend of $0.750.

• $O — Realty Income declares $0.2625/share monthly dividend, 2.1% increase from prior dividend of $0.2570.

• $MTB — M&T Bank declares $1.35/share quarterly dividend, 3.8% increase from prior dividend of $1.30.

• $LII —Lennox declares $1.15/share quarterly dividend, 4.5% increase from prior dividend of $1.10.

Source: Dividend Data

INVESTING ARTICLES & STORIES

Lowe’s, Target, Macy’s

1. Lowe’s beats on earnings and revenue, even as consumers spend less on DIY projects (CNBC)

2. Hey Target, Walmart Is Coming for You (Bloomberg)

3. TD Bank Q2 earnings top consensus as trading revenue, wealth fees climb (Seeking Alpha)

4. Macy’s Reports Another Drop in Sales but Sees ‘Traction’ in Turnaround (NYT)

5. Intuit Stock Slumps After Warning TurboTax Could Lose 1 Million Free Users

SOMETHING FUN

New Development: Bankruptcy Square

Thanks for the read! Let me know what you thought by replying back to this email.

— Zach

Disclaimer: Dividend Dividend Weekly (Dividend Data) is not a professional financial service. All materials released from Dividend Data Weekly (Dividend Data) are for educational and entertainment purposes. Dividend Data Weekly (Dividend Data) is not a replacement for a professional's opinion. Contributors to the Dividend Data Weekly (Dividend Data) might have equities mentioned in the newsletter