Want to Beat the Dow Jones? Buy This Blue Chip Stock.
Investors would be hard pressed to find higher-quality businesses than the 30 that belong to the Dow Jones Industrial Average. That is because these companies are known by most consumers and investors alike around the world for their iconic brands. This explains how a $10,000 investment in the Dow Jones index made 10 years ago would now be valued at $27,000 with dividends reinvested.
There are a handful of companies that are not included in the index that have created significantly more wealth for their shareholders in the last decade. Turning a $10,000 investment into $70,000 with dividends reinvested over that time, Mastercard (NYSE: MA) is one such company. Let's examine the payment processor's fundamentals and valuation to determine whether such outperformance could continue.
The rise of e-commerce has coincided with the growth of alternative payments like credit and debit cards. Considering that these are the two most common payment methods that consumers use to participate in e-commerce shopping, this shouldn't be a surprise.
Source Fool.com
