Mastercard

The world is becoming more digitalized. As a consequence, paper cash is being replaced with cards. One of the biggest players in this field is Mastercard.

Mastercard was founded in 1958 and has been in operation for decades. Headquartered in New York, Mastercard works to develop payment channels electronically.

I think Mastercard is set set up to be a great investment for the Gen Z crowd. While they have been around a while, the company is still disrupting and changing the payment landscape.

Take the Apple Card (Note: I own Apple stock, I do not own Mastercard). Apple released the Apple Card to take advantage of the mobile payments system. Goldman Sachs administers the account portion, doing credit checks and managing the customer side of things.

I love that Mastercard saw an opportunity to be THE card for tons of iPhone users. If even 10% of iPhone users get the Apple Card, that will create lots of business for Mastercard. However, they need to be replacing Visa, Discover, American Express, or even users of cash. But that should still make up a big portion of Apple Card users.

Not, lets look at the numbers.

Looking at Mastercard’s 2019 numbers, they have a net income of $8.1 billion. What makes this even better is that their 2018 profit was $5.8 billion. That is huge growth for a company that has been around for as long as Mastercard has.

Mastercard also pays a dividend. I think it is very important to get dividend income for younger investors. Mastercard has more than doubled their dividend since 2015. While the yield is less than half a percent Mastercard should be able to continue to raise its dividend and make payments.

Overall, I think Mastercard is a great investment. I do think it is important to not invest too much in Mastercard, because Visa, PayPal, and other technology firms will try to get into this space. Having said that, this should be a company that gives investors great returns.

Disclaimer: This post is for entertainment purposes only. Consult a financial professional before making investment decisions. Investments can lose money.