eBay Inc - EBAY: A Future Dividend Payer?

eBay Inc., stock ticker EBAY, is in a great position to begin paying a quarterly dividend. E-commerce has not stopped growing and should continue to be profitable as long as the Internet is around (which will be forever!). The future of e-commerce looks very bright. eBay owns PayPal, which is beginning to take market share from Visa (stock ticker V) and MasterCard (stock ticker MA).

I like eBay's long term outlook, but in the meantime they should seriously consider paying a 1.5 to 2% dividend. Feel free to click here to visit eBay's Financial Information and see for yourself how eBay makes and keeps their money.

eBay was founded in 1995 and is the worldwide leader in shopping and payments on the web. Every day, they connect hundreds of millions of buyers and sellers — and they continue to find new ways to help people do business around the world as we create long-term value for their shareholders.

Here is a great interview with CEO of eBay Inc., John Donahue.

eBay enables commerce through three reportable segments: Marketplaces, Payments and GSI Commerce (GSI). These segments provide online platform, services and tools to help individuals and small, medium and large merchants globally to establish online and mobile commerce and payments. In addition, through X.commerce, it has created an open source platform, which provides software developers and merchants access to its applications programming interfaces (APIs), to develop software and solutions for commerce. As of December 31, 2011, it had more than 100 million active users transacting on its sites, millions of merchants using one or more of its platforms, and a developer community with more than 800,000 members using its APIs. During the year ended December 31, 2011, the Company acquired Brands4friends and GittiGidiyor. In May 2012, PRIMEDIA announced that it completed the acquisition of eBay's Rent.com subsidiary.

Listed below are eBay's key statistics:

52 week share price 26.86 - 41.96, Vol / Avg. 14.61M/13.07, MMkt cap 52.51, BP/E 16.01, Div/yield $0.00 (For now!)/0.00%, EPS 2.54, Shares 1.29B, Beta 1.48, Inst. own 83%

Here are some great articles about companies who should pay a dividend, but don't! eBay is included within each list. I am not the eBay bandwagon here. I strongly believe in the long-term upside of EBAY and have always believed that they can pay at least a 1.5% to 2% dividend yield.

10 Stocks That Should Pay A Dividend, But Don't

More Than 20 Great Companies Which Refuse To Pay Dividends

7 Big Tech Companies That Need To Follow Apple’s Dividend Policy

What a 2% Dividend Yield Would Look Like at Five Big Techs

So what would eBay's financials look like if they started to pay a 2% dividend? One article suggests:


Annual dividend per share: 47 centsTotal annual payout: $616 millionCash and short-term investments: $4.9 billionPayout as percentage of cash: 13%

It is possible! Need more proof? Please read eBay's most recent Form 10-Q, here.

Investors demand more of their return from cash dividends and now is time for eBay to please their patience shareholders. What are your thoughts? Will an eBay dividend solidify the company as a long-term investment? Will eBay be around for 10, 15, 25 years from now? Have you used eBay during the last quarter? Feel free to comment below to start the conversation. Until next time, please watch these two cool eBay related YouTube videos below and have a great day!



eBay is currently undervalued. Their future looks bright as they begin is partnering with retailers (i.e. GiftsNearby). PayPal gives the company a unique advantage over its competitors.

eBay Christmas Commercial

CEO John Donahue discusses why is social media important?

How To Sell Your First Item on eBay

Visa Inc - V: A Stock For Your Retirement Years

Visa Inc, stock ticker V, currently pays a quarterly dividend of 22 cents per share (0.78% dividend yield as of 5/20/12). In my opinion V looks like a stock to hold within your Roth IRA stock portfolio for your retirement years even if the yield is not currently at 2%+. Visa has a $90 plus billion market cap and a dividend that has doubled over the past few years. V is a monster on the NYSE. Visa holds no debt and $3 billion dollars on the books. And the books are not cooked!

In short, Visa is a global payments technology company that connects consumers, businesses, banks and governments in more than 200 countries and territories, enabling the population digital currency instead of cash and checks. Visa Inc manages a range of payment brands, including Visa, Visa Electron, PLUS and Interlink, which it licenses to its clients for use in their payment programs. They offer a branded payments product platforms which includes credit, debit, prepaid and cash access programs for their customers. Visa Inc provides transaction processing and value added services to its clients through VisaNet, Visa Debit Processing Services and Visa Processing Services.

Recent Acquisitions include:
- March 2011 -  PlaySpan Inc. (click here to visit PlaySpan's website)
- June 2011 - Fundamo (click here to visit Fundamo's website)

Visa practically owns the entire electronic banking platform, in addition to Mastercard (stock ticker MA). V is very undervalued. The world is gradually going to become a cashless society. V and MA will be there to profit all along the way. I cannot think of a better business model. With a 29% year over year growth over last 5 years and 19% projected for next 5 years, and no debt V continues to beat analyst expectations.

We all know the global population is increasing and so is their acceptance of credit in emerging markets, which include China, India, Africa, and so forth. With the acquisition of Fundamo Visa is well positioned to secure a monopoly in profits/transactions for at least our lifetime.

Click here to view a History of Visa Inc or click here to download more detail about all that is Visa!

Visa's Current Statistics to get a head start on your due diligence:

52 week 73.11 - 125.35
Vol / Avg. 6.49M/3.91M
Mkt cap 91.69B
P/E 26.30
Div/yield $0.22/0.78%
EPS 4.28
Shares 813.98M
Beta 0.76
Inst. own 54%

Q1 (Mar '12) versus 2011
Net profit margin 50.12% 39.68%
Operating margin 62.30% 59.38%
EBITD margin - 62.52%
Return on average assets 14.27% 10.70%
Return on average equity 18.57% 14.19%
Employees 7,500 -

Notable Recent News Topics pertaining to Visa:
5/7/12 - Visa Raises "No Signature" Limit to $50 to Increase Merchant Efficiency & Consumer Convenience
5/2/12 - Visa Inc. Posts Strong Fiscal Second Quarter 2012 Earnings Results
2/29/12 - Orange to Offer Visa Mobile Prepaid Accounts to Orange Money Customers in Africa and the Middle East
2/22/12 - Visa and Monitise Set to Transform Mobile Payments Services in India
2/6/12 - Visa Tops One Million Chip Cards in the U.S.

1/10/12 - Visa and Better ATM Services® Debut First ATM-Dispensed Visa Gift Cards

1/10/12 - Visa Certifies Smartphones for Use as Visa Mobile Payment Devices

Visa Inc is a well established company and here to stay. V dominates the credit card and debit card markets. The bottom line is this: for all of those late fee, overdraft, and interest charges that Visa card members pay it provides a healthy revenue stream for Visa. Why not purchase V long term so you can have that same type of revenue stream in dividend payments? I am not surprised Visa is running on all cylinders and will expect this stock to be a long-term winner.

Please feel free to watch these Visa related YouTube videos below. Thank you for your time. Have a great day.