ℹ️ Skipped - page is already crawled
| Filter | Status | Condition | Details |
|---|---|---|---|
| HTTP status | PASS | download_http_code = 200 | HTTP 200 |
| Age cutoff | PASS | download_stamp > now() - 6 MONTH | 0.3 months ago |
| History drop | PASS | isNull(history_drop_reason) | No drop reason |
| Spam/ban | PASS | fh_dont_index != 1 AND ml_spam_score = 0 | ml_spam_score=0 |
| Canonical | PASS | meta_canonical IS NULL OR = '' OR = src_unparsed | Not set |
| Property | Value |
|---|---|
| URL | https://www.fool.com/investing/2026/03/19/1-inflation-resistant-stock-to-buy-and-hold-foreve/ |
| Last Crawled | 2026-04-07 14:05:55 (9 days ago) |
| First Indexed | 2026-03-19 21:16:33 (28 days ago) |
| HTTP Status Code | 200 |
| Meta Title | 1 Inflation-Resistant Stock to Buy and Hold Forever | The Motley Fool |
| Meta Description | Rising prices won't rattle this company's business. |
| Meta Canonical | null |
| Boilerpipe Text | Is inflation about to rise? Amid geopolitical tensions, soaring oil prices, and persistent tariffs, many analysts and government officials are worried inflation will spike. This concerns investors, too. The relationship between inflation and equity markets is complex, but generally, stocks tend not to perform as well when prices rise, as this also leads to higher business expenses, lower consumer activity, among other problems.
Thankfully, some corporations can do just fine -- or even better than fine -- even in such environments. One of them is
Visa
(
V
+0.21%
)
. And not only is the financial services specialist a great stock to have in your portfolio when inflation rises, but it is also an excellent buy-and-hold forever option. Let me explain.
Image source: Getty Images.
Visa's business can handle inflation
Visa makes money by facilitating credit and debit card transactions through its payment network. The company charges a fee for each transaction -- as a percentage of it -- that runs through its system. As prices rise for any reason, even if Visa's fees remain the same, the total dollar amount it pockets for its services increases. So, in a way, the company benefits from inflation. True, a price rise may also harm the business by dampening consumer spending and leading to fewer transactions overall. These two forces somewhat offset one another, but Visa should still perform better than most in an inflationary period.
As the company's former CEO, Al Kelly, once said: "Historically, inflation has been positive for us."
But Visa isn't worth investing in just because of this aspect of its business. The company leads its niche of the
financial services industry
, benefits from a wide moat due to network effects, and still has a massive addressable market to tap into. Visa estimates that there are still trillions in cash and check (and other types of) transactions that can be brought into its ecosystem.
V
Today's Change
(0.21%) $0.64
Current Price
$303.97
Beyond that, the continued growth of the
e-commerce market
-- where digital payment methods are a necessity -- should provide an important long-term tailwind for the company. And then, there is Visa's excellent dividend program. The company's forward yield looks unimpressive at 0.9%.
That's lower than the 1.2% average for the
S&P 500
(which is itself nothing to boast about).
However, Visa has increased its payouts by 378.6% over the past decade, and it clearly has much more room for dividend hikes, given its modest cash payout ratio of 21.5%.
Not only is Visa's business well-positioned to perform relatively well in inflationary periods, but the company's growing dividend can significantly boost returns over the long run as it is reinvested, helping investors outpace inflation. So, Visa is an excellent stock to buy now because it could navigate the current storm better than most while also maintaining its solid dividend program and delivering excellent returns over the next few decades. |
| Markdown | [Accessibility Menu](https://www.fool.com/investing/2026/03/19/1-inflation-resistant-stock-to-buy-and-hold-foreve/)
Search for a company
[Accessibility](https://www.fool.com/investing/2026/03/19/1-inflation-resistant-stock-to-buy-and-hold-foreve/)
Log In
[Help](https://support.fool.com/)
[](https://www.fool.com/)
- Our Services
[All Services](https://www.fool.com/services/)[Stock Advisor](https://www.fool.com/services/stock-advisor/)[Epic](https://www.fool.com/services/epic/)[Epic Plus](https://www.fool.com/services/epic-plus/)[Fool Portfolios](https://www.fool.com/services/fool-portfolios/)[Fool One](https://www.fool.com/services/one/)[All Podcasts](https://www.fool.com/podcasts/)[Motley Fool Money Podcast](https://www.fool.com/podcasts/motley-fool-money/)[Rule Breaker Investing Podcast](https://www.fool.com/podcasts/rule-breaker-investing/)[The Motley Fool Foundation](https://foolfoundation.org/)
- Stock Market News
[Live Coverage](https://www.fool.com/investing/live-coverage/)[Trending News](https://www.fool.com/trending-news/)[Stock Market News](https://www.fool.com/investing-news/)[Market Movers](https://www.fool.com/market-movers/)[Tech Stock News](https://www.fool.com/tech-stock-news/)[Market Trends](https://www.fool.com/market-trends/)[Crypto News](https://www.fool.com/crypto-news/)[Stock Market Indexes Today](https://www.fool.com/markets/)[Most Active Stocks Today](https://www.fool.com/markets/most-active-stocks/)[Today's Biggest Stock Gainers](https://www.fool.com/markets/top-stock-gainers/)[Today's Biggest Stock Losers](https://www.fool.com/markets/top-stock-losers/)[Stock Quotes by Exchange](https://www.fool.com/quote/)[Market Research](https://www.fool.com/research/)[📨 Breakfast News](https://www.fool.com/investing/breakfast-news/)[Top Stocks to Buy Now](https://www.fool.com/investing/top-stocks-to-buy-and-hold/)[Best ETFs to Buy](https://www.fool.com/investing/how-to-invest/etfs/etfs-to-buy/)[Best AI Stocks](https://www.fool.com/investing/stock-market/market-sectors/information-technology/ai-stocks/)[Best Growth Stocks](https://www.fool.com/investing/stock-market/types-of-stocks/growth-stocks/)[Dividend Kings](https://www.fool.com/investing/stock-market/types-of-stocks/dividend-stocks/dividend-kings/)[Best Index Funds](https://www.fool.com/investing/how-to-invest/index-funds/best-index-funds/)[Next Cryptos to Explode](https://www.fool.com/investing/stock-market/market-sectors/financials/cryptocurrency-stocks/next-crypto-to-explode/)[Technology](https://www.fool.com/investing/stock-market/market-sectors/information-technology/)[Energy](https://www.fool.com/investing/stock-market/market-sectors/energy/)[Real Estate](https://www.fool.com/investing/stock-market/market-sectors/real-estate-investing/)[Healthcare](https://www.fool.com/investing/stock-market/market-sectors/healthcare/)[Consumer Goods](https://www.fool.com/investing/stock-market/market-sectors/consumer-staples/)[Materials](https://www.fool.com/investing/stock-market/market-sectors/materials/)[Industrials](https://www.fool.com/investing/stock-market/market-sectors/industrials/)
- How to Invest
[How to Invest Money](https://www.fool.com/investing/how-to-invest/)[What to Invest In](https://www.fool.com/investing/how-to-invest/what-to-invest-in/)[How to Invest in Stocks](https://www.fool.com/investing/how-to-invest/stocks/)[How to Invest in ETFs](https://www.fool.com/investing/how-to-invest/etfs/)[How to Invest in Index Funds](https://www.fool.com/investing/how-to-invest/index-funds/)[How to Invest in Bonds](https://www.fool.com/investing/how-to-invest/bonds/)[Financial Dictionary](https://www.fool.com/terms/)[Stock Market 101](https://www.fool.com/investing/stock-market/)[Types of Stocks](https://www.fool.com/investing/stock-market/types-of-stocks/)[Stock Market Sectors](https://www.fool.com/investing/stock-market/market-sectors/)[Stock Market Indexes](https://www.fool.com/investing/stock-market/indexes/)[What Are Stock Splits?](https://www.fool.com/terms/s/stock-split/)[What Is Compound Interest?](https://www.fool.com/investing/how-to-invest/stocks/compound-interest-accounts/)[After Hours Trading](https://www.fool.com/terms/a/after-hours-trading/)[How to Buy Stock](https://www.fool.com/investing/how-to-invest/stocks/how-to-buy-stock/)[Best Brokers for Beginners](https://www.fool.com/money/buying-stocks/best-online-stock-brokers-for-beginners/)[Best Brokerage Accounts](https://www.fool.com/money/buying-stocks/)[Good Time to Buy Stocks](https://www.fool.com/investing/how-to-invest/stocks/good-time-to-buy-stocks/)[How Many Shares to Buy?](https://www.fool.com/investing/how-to-invest/stocks/how-many-shares-buy-stock/)[Portfolio Diversification](https://www.fool.com/investing/how-to-invest/portfolio-diversification/)[How to Invest \$100](https://www.fool.com/investing/how-to-invest/how-to-invest-100-dollars/)[Magnificent Seven Companies](https://www.fool.com/investing/how-to-invest/stocks/magnificent-seven/)[Warren Buffett Investments](https://www.fool.com/investing/how-to-invest/famous-investors/warren-buffett-investments/)[Investing in ChatGPT](https://www.fool.com/investing/stock-market/market-sectors/information-technology/ai-stocks/chatgpt/)[Investing in SpaceX](https://www.fool.com/investing/how-to-invest/stocks/how-to-invest-in-spacex-stock/)[Investing in OpenAI](https://www.fool.com/investing/how-to-invest/stocks/how-to-invest-in-openai-stock/)[Investing in Nvidia](https://www.fool.com/investing/how-to-invest/stocks/how-to-invest-in-nvidia-stock/)[Investing in Databricks](https://www.fool.com/investing/how-to-invest/stocks/how-to-invest-in-databricks/)
- Retirement
[Retirement News](https://www.fool.com/retirement-news/)[Retirement 101](https://www.fool.com/retirement/)[Types of Retirement Accounts](https://www.fool.com/retirement/plans/)[How to Contribute to 401k/IRA?](https://www.fool.com/retirement/plans/401k/contribute-to-401k-and-ira/)[Strategies to Save for Retirement](https://www.fool.com/retirement/strategies/)[Asset Allocation for My Age](https://www.fool.com/retirement/strategies/asset-allocation-by-age/)[Best IRA Brokerage Accounts](https://www.fool.com/money/buying-stocks/best-ira-accounts/)[Social Security 101](https://www.fool.com/retirement/social-security/)[How to Maximize Social Security?](https://www.fool.com/retirement/social-security/how-to-maximize-social-security/)[Full Retirement Age](https://www.fool.com/retirement/social-security/full-retirement-age/)[COLAs](https://www.fool.com/retirement/social-security/colas/)[Calculate Your SS Benefits](https://www.fool.com/retirement/social-security/benefits-formula/)[Collecting Spousal Benefits](https://www.fool.com/retirement/social-security/spousal-benefits/)[Maximize Social Security Benefit](https://www.fool.com/retirement/social-security/how-to-maximize-social-security/)[How Much Do I Need to Retire?](https://www.fool.com/retirement/how-much-do-i-need/)[When To Retire](https://www.fool.com/retirement/strategies/when-can-i-retire/)[401(k) Plans](https://www.fool.com/retirement/plans/401k/)[403(b) Plans](https://www.fool.com/retirement/plans/403b/)[Roth IRA Plans](https://www.fool.com/retirement/plans/roth-ira/)[IRA Plans](https://www.fool.com/retirement/plans/ira/)[HSA Plans](https://www.fool.com/retirement/plans/hsa/)[Complete Retirement Guide](https://www.fool.com/retirement/complete-guide/)[Best & Worst States to Retire](https://www.fool.com/research/best-states-to-retire/)[Average Retirement Savings](https://www.fool.com/research/average-retirement-savings/)[Moving for Retirement](https://www.fool.com/retirement/relocation/)[Healthcare in Retirement](https://www.fool.com/retirement/healthcare-in-retirement/)[Understanding Taxes in Retirement](https://www.fool.com/retirement/taxes/)[401(k) Minimum Distributions](https://www.fool.com/retirement/plans/401k/required-minimum-distributions/)
- Personal Finance
[Best Credit Cards](https://www.fool.com/money/credit-cards/best-credit-cards/)[Compare Credit Cards](https://www.fool.com/money/credit-cards/compare-cards/)[Credit Card Reviews](https://www.fool.com/money/credit-cards/reviews/)[Credit Card Guides and Tools](https://www.fool.com/money/credit-cards/guides-tools/)[Best Savings Accounts](https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/)[Bank Reviews](https://www.fool.com/money/banks/reviews/)[Best Personal Loans](https://www.fool.com/money/personal-loans/)[Personal Loan Reviews](https://www.fool.com/money/personal-loans/reviews/)[Best Mortgage Lenders](https://www.fool.com/money/mortgages/best-mortgage-lenders/)[Current Mortgage Rates](https://www.fool.com/money/mortgages/rates/)[Mortgage Lender Reviews](https://www.fool.com/money/mortgages/reviews/)[Guide to Mortgages](https://www.fool.com/money/mortgages/)[Auto Insurance](https://www.fool.com/money/insurance/auto/)[Home Insurance](https://www.fool.com/money/insurance/homeowners/)[Life Insurance](https://www.fool.com/money/insurance/life/)
- About Us
[About Us](https://www.fool.com/about/)[Contact Us](https://www.fool.com/contact/customer-service/)[Investing Philosophy](https://www.fool.com/about/investing-philosophy/)[Motley Fool Money](https://www.fool.com/money/)[The Motley Fool Foundation](https://foolfoundation.org/)[Reviews](https://www.fool.com/about/reviews/)[Newsroom](https://www.fool.com/contact/newsroom/)[YouTube](https://www.youtube.com/channel/UCpRQuynBX9Qy9tPrcswpPag)[LinkedIn](https://www.linkedin.com/company/the-motley-fool/)[X](https://x.com/themotleyfool)[Facebook](https://www.facebook.com/themotleyfool/)[Instagram](https://www.instagram.com/themotleyfoolofficial/)[Discussion Boards](https://discussion.fool.com/)[CAPS - Stock Picking Community](https://caps.fool.com/)[Advertise With Us](https://www.fool.com/advertising/)[Become an Affiliate Partner](https://www.fool.com/affiliates/)[Publishing Standards](https://www.fool.com/about/the-motley-fools-publishing-standards/)[All Services](https://www.fool.com/services/)[Stock Advisor](https://www.fool.com/services/stock-advisor/)[Epic](https://www.fool.com/services/epic/)[Epic Plus](https://www.fool.com/services/epic-plus/)[Fool Portfolios](https://www.fool.com/services/fool-portfolios/)[Fool One](https://www.fool.com/services/one/)
- [Top 10 Stocks to Buy Now ›](https://api.fool.com/infotron/splitter/route/article-template-button?apikey=5c8e52dd-1bea-455e-87f5-d5506e590f21)
[Top 10 Stocks to Buy Now ›](https://api.fool.com/infotron/splitter/route/article-template-button?apikey=5c8e52dd-1bea-455e-87f5-d5506e590f21)
[S\&P 500 6,567.76-0.7% -44.07](https://www.fool.com/quote/snpindex/^gspc/)
[DJI 46,349.69-0.7% -320.19](https://www.fool.com/quote/djindices/^dji/)
[NASDAQ 21,736.26-1.2% -260.08](https://www.fool.com/quote/nasdaqindex/^ixic/)
[Bitcoin \$68,273.00-1.6% -\$1,144.49](https://www.fool.com/quote/crypto/btc/)
[AMZN \$210.61-1.0% -\$2.18](https://www.fool.com/quote/nasdaq/amzn/)
[GOOG \$296.18-0.5% -\$1.49](https://www.fool.com/quote/nasdaq/goog/)
[META \$570.48-0.4% -\$2.54](https://www.fool.com/quote/nasdaq/meta/)
[MSFT \$368.82-1.1% -\$4.06](https://www.fool.com/quote/nasdaq/msft/)
[NVDA \$175.06-1.5% -\$2.58](https://www.fool.com/quote/nasdaq/nvda/)
[TSLA \$341.98-3.1% -\$10.84](https://www.fool.com/quote/nasdaq/tsla/)
[Most Active Stocks](https://www.fool.com/markets/most-active-stocks/)[Daily Stock Gainers](https://www.fool.com/markets/top-stock-gainers/)[Daily Stock Losers](https://www.fool.com/markets/top-stock-losers/)
[Most Active Stocks](https://www.fool.com/markets/most-active-stocks/)[Daily Stock Gainers](https://www.fool.com/markets/top-stock-gainers/)[Daily Stock Losers](https://www.fool.com/markets/top-stock-losers/)
Free Article[Explore Premium Services](https://www.fool.com/services/)
# 1 Inflation-Resistant Stock to Buy and Hold Forever
Rising prices won't rattle this company's business.
By [Prosper Junior Bakiny](https://www.fool.com/author/20111/) – Mar 19, 2026 at 5:15PM EST
[Follow us](https://profile.google.com/cp/CgkvbS8wNTc4bWs)
Share
Summarize with AI
## Key Points
- Visa's business can actually benefit from inflation.
- The company has a massive addressable market and a fantastic dividend track record.
Is inflation about to rise? Amid geopolitical tensions, soaring oil prices, and persistent tariffs, many analysts and government officials are worried inflation will spike. This concerns investors, too. The relationship between inflation and equity markets is complex, but generally, stocks tend not to perform as well when prices rise, as this also leads to higher business expenses, lower consumer activity, among other problems. Thankfully, some corporations can do just fine -- or even better than fine -- even in such environments. One of them is **Visa** ([V](https://www.fool.com/quote/nyse/v/) \+0.21%). And not only is the financial services specialist a great stock to have in your portfolio when inflation rises, but it is also an excellent buy-and-hold forever option. Let me explain.

Image source: Getty Images.
## Visa's business can handle inflation
Visa makes money by facilitating credit and debit card transactions through its payment network. The company charges a fee for each transaction -- as a percentage of it -- that runs through its system. As prices rise for any reason, even if Visa's fees remain the same, the total dollar amount it pockets for its services increases. So, in a way, the company benefits from inflation. True, a price rise may also harm the business by dampening consumer spending and leading to fewer transactions overall. These two forces somewhat offset one another, but Visa should still perform better than most in an inflationary period.
As the company's former CEO, Al Kelly, once said: "Historically, inflation has been positive for us." But Visa isn't worth investing in just because of this aspect of its business. The company leads its niche of the [financial services industry](https://www.fool.com/investing/stock-market/market-sectors/financials/), benefits from a wide moat due to network effects, and still has a massive addressable market to tap into. Visa estimates that there are still trillions in cash and check (and other types of) transactions that can be brought into its ecosystem.
Collapse
V
## [NYSE: V](https://www.fool.com/quote/nyse/v/)
Visa
Today's Change
(0.21%) \$0.64
Current Price
\$303.97
Unable to reach the data service. Please check your connection.
YTD
1w
1m
3m
6m
1y
5y
Price
VS S\&P
### Key Data Points
Market Cap
\$578B
Day's Range
\$302.00 - \$304.90
52wk Range
\$293.89 - \$375.51
Volume
26K
Avg Vol
8\.1M
Gross Margin
78\.02%
Dividend Yield
0\.83%
Beyond that, the continued growth of the [e-commerce market](https://www.fool.com/investing/stock-market/market-sectors/consumer-discretionary/top-ecommerce-companies/) -- where digital payment methods are a necessity -- should provide an important long-term tailwind for the company. And then, there is Visa's excellent dividend program. The company's forward yield looks unimpressive at 0.9%. That's lower than the 1.2% average for the **S\&P 500** (which is itself nothing to boast about).
However, Visa has increased its payouts by 378.6% over the past decade, and it clearly has much more room for dividend hikes, given its modest cash payout ratio of 21.5%. Not only is Visa's business well-positioned to perform relatively well in inflationary periods, but the company's growing dividend can significantly boost returns over the long run as it is reinvested, helping investors outpace inflation. So, Visa is an excellent stock to buy now because it could navigate the current storm better than most while also maintaining its solid dividend program and delivering excellent returns over the next few decades.
## Read Next
Apr 4, 2026
•By [Lyle Daly](https://www.fool.com/author/20014/)
[The Largest Financial Companies by Market Cap in April 2026](https://www.fool.com/research/largest-financial-companies/)
Apr 1, 2026
•By [Lyle Daly](https://www.fool.com/author/20014/)
[The Largest Companies by Market Cap in April 2026](https://www.fool.com/research/largest-companies-by-market-cap/)
Apr 1, 2026
•By [Jack Caporal](https://www.fool.com/author/20393/)
[Which Stablecoins Are the Largest and Most Popular in 2026?](https://www.fool.com/research/largest-stablecoins/)
Apr 1, 2026
•By [Justin Pope](https://www.fool.com/author/6581/)
[The Warren Buffett Stock That Has Compounded at 18.5% Annually for 18 Years](https://www.fool.com/investing/2026/04/01/warren-buffett-stock-compounded-18-visa/)
Mar 31, 2026
•By [Sean Williams](https://www.fool.com/author/1813/)
[The Dow Jones Industrial Average Is in Correction Territory: 2 Historically Cheap Components That Make for No-Brainer Buys Right Now](https://www.fool.com/investing/2026/03/31/dow-in-correction-territory-2-no-brainer-buys-now/)
Mar 30, 2026
•By [Neil Patel](https://www.fool.com/author/20294/)
[Worried About Inflation? Take a Look at These 2 Warren Buffett Stocks.](https://www.fool.com/investing/2026/03/30/worried-about-inflation-2-warren-buffett-stocks/)
### About the Author

Prosper Junior Bakiny is a contributing Motley Fool healthcare analyst covering biotechnology, pharmaceuticals, and healthcare stocks. Before The Motley Fool, Prosper wrote about investing topics ranging from stock market news to private equity for various companies. He holds a master’s degree in corporate finance from the University of Maryland Global Campus.
[TMFPBakiny](https://www.fool.com/author/20111/)
*[Prosper Junior Bakiny](https://www.fool.com/author/20111/) has positions in Visa. The Motley Fool has positions in and recommends Visa. The Motley Fool has a [disclosure policy](https://www.fool.com/legal/fool-disclosure-policy/).*
### Stocks Mentioned
[V Visa NYSE: V\$304.07 (+0.24%)+\$0.74](https://www.fool.com/quote/nyse/v/)
\*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
## Premium Investing Services
Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.
[View Premium Services](https://www.fool.com/services/?ftm_cam=footer-services-sitewide-prospects)
[](https://www.fool.com/)
Making the world smarter, happier, and richer.
- [Facebook](https://www.facebook.com/themotleyfool)
- [Twitter](https://x.com/TheMotleyFool)
- [LinkedIn](https://www.linkedin.com/company/the-motley-fool/)
- [Pinterest](https://www.pinterest.com/themotleyfool/)
- [YouTube](https://www.youtube.com/user/TheMotleyFool)
- [Instagram](https://www.instagram.com/themotleyfoolofficial/)
- [TikTok](https://www.tiktok.com/@themotleyfoolofficial)
© 1995 - 2026 The Motley Fool. All rights reserved.
Market data powered by [Xignite](https://xignite.com/) and [Polygon.io](https://polygon.io/).
About The Motley Fool
- [About Us](https://www.fool.com/about/)
- [Careers](https://careers.fool.com/)
- [Research](https://www.fool.com/research/)
- [Newsroom](https://www.fool.com/contact/newsroom/)
- [Contact](https://www.fool.com/legal/contact-us/)
- [Advertise](https://www.fool.com/cdn-cgi/l/email-protection#0465606d6a75716d766d617744626b6b682a676b69)
Our Services
- [All Services](https://www.fool.com/services/)
- [Stock Advisor](https://www.fool.com/services/stock-advisor/)
- [Epic](https://www.fool.com/services/epic/)
- [Epic Plus](https://www.fool.com/services/epic-plus/)
- [Fool Portfolios](https://www.fool.com/services/fool-portfolios/)
- [Fool One](https://www.fool.com/services/one/)
- [Motley Fool Money](https://www.fool.com/money/)
Around the Globe
- [Fool UK](https://www.fool.co.uk/)
- [Fool Australia](https://www.fool.com.au/)
- [Fool Canada](https://www.fool.ca/)
Free Tools
- [CAPS Stock Ratings](https://caps.fool.com/)
- [Discussion Boards](https://discussion.fool.com/)
- [Calculators](https://www.fool.com/calculators/index/)
- [Financial Dictionary](https://www.fool.com/terms/)
Affiliates & Friends
- [Motley Fool Asset Management](https://www.fool.com/affiliates/mfam/)
- [Motley Fool Wealth Management](https://www.fool.com/affiliates/mfwm/)
- [Motley Fool Ventures](https://www.fool.com/affiliates/ventures/)
- [Fool Community Foundation](https://www.fool.com/affiliates/foundation/)
- [Become an Affiliate Partner](https://www.fool.com/affiliates/)
- [Terms of Use](https://www.fool.com/legal/terms-and-conditions/fool-rules/ "Terms of Use")
- [Privacy Policy](https://www.fool.com/legal/privacy-statement/ "Privacy Policy")
- [Disclosure Policy](https://www.fool.com/legal/fool-disclosure-policy/ "Disclosure Policy")
- [Accessibility Policy](https://www.fool.com/legal/accessibility-policy/ "Accessibility Policy")
- [Copyright, Trademark and Patent Information](https://www.fool.com/legal/stuff-we-own/ "Copyright, Trademark and Patent Information")
- [Terms and Conditions](https://www.fool.com/legal/terms-and-conditions/ "Terms and Conditions")
- [Do Not Sell My Personal Information](https://www.fool.com/data-protection/ccpa-update/ "Do Not Sell My Personal Information") |
| Readable Markdown | Is inflation about to rise? Amid geopolitical tensions, soaring oil prices, and persistent tariffs, many analysts and government officials are worried inflation will spike. This concerns investors, too. The relationship between inflation and equity markets is complex, but generally, stocks tend not to perform as well when prices rise, as this also leads to higher business expenses, lower consumer activity, among other problems. Thankfully, some corporations can do just fine -- or even better than fine -- even in such environments. One of them is **Visa** ([V](https://www.fool.com/quote/nyse/v/) \+0.21%). And not only is the financial services specialist a great stock to have in your portfolio when inflation rises, but it is also an excellent buy-and-hold forever option. Let me explain.

Image source: Getty Images.
## Visa's business can handle inflation
Visa makes money by facilitating credit and debit card transactions through its payment network. The company charges a fee for each transaction -- as a percentage of it -- that runs through its system. As prices rise for any reason, even if Visa's fees remain the same, the total dollar amount it pockets for its services increases. So, in a way, the company benefits from inflation. True, a price rise may also harm the business by dampening consumer spending and leading to fewer transactions overall. These two forces somewhat offset one another, but Visa should still perform better than most in an inflationary period.
As the company's former CEO, Al Kelly, once said: "Historically, inflation has been positive for us." But Visa isn't worth investing in just because of this aspect of its business. The company leads its niche of the [financial services industry](https://www.fool.com/investing/stock-market/market-sectors/financials/), benefits from a wide moat due to network effects, and still has a massive addressable market to tap into. Visa estimates that there are still trillions in cash and check (and other types of) transactions that can be brought into its ecosystem.
V
Today's Change
(0.21%) \$0.64
Current Price
\$303.97
Beyond that, the continued growth of the [e-commerce market](https://www.fool.com/investing/stock-market/market-sectors/consumer-discretionary/top-ecommerce-companies/) -- where digital payment methods are a necessity -- should provide an important long-term tailwind for the company. And then, there is Visa's excellent dividend program. The company's forward yield looks unimpressive at 0.9%. That's lower than the 1.2% average for the **S\&P 500** (which is itself nothing to boast about).
However, Visa has increased its payouts by 378.6% over the past decade, and it clearly has much more room for dividend hikes, given its modest cash payout ratio of 21.5%. Not only is Visa's business well-positioned to perform relatively well in inflationary periods, but the company's growing dividend can significantly boost returns over the long run as it is reinvested, helping investors outpace inflation. So, Visa is an excellent stock to buy now because it could navigate the current storm better than most while also maintaining its solid dividend program and delivering excellent returns over the next few decades. |
| Shard | 88 (laksa) |
| Root Hash | 16263700115757751488 |
| Unparsed URL | com,fool!www,/investing/2026/03/19/1-inflation-resistant-stock-to-buy-and-hold-foreve/ s443 |