You probably know the phenomenon: When you’re traveling, money tends to flow a bit more loosely. Payment is often made with credit cards, which benefits credit card companies like Mastercard. In 2020, numerous trips were canceled due to Corona, which can be seen in the small dip in revenue and profit figures in the chart below.

Mastercard with masterful revenue and profit development Except for the exceptional year 2020, there have been double-digit increases in revenue and profit since 2016. Forecasts also predict such an increase in fundamental indicators for the coming years. Even though the dividend yield for 2023 remains in the manageable range at 0.56 percent, the security could be interesting for long-term investors.

Company development Mastercard; Source: aktienscreener.com

Even good stocks have drawdowns! As traders, we are less concerned with fundamental indicators and more with what the chart says. The almost 24 percent increase in price in twelve months is impressive. After a very steep development towards the all-time high on February 2nd, the Mastercard stock is currently moving sideways. This is also a good thing, otherwise an overbought situation could soon occur, which would eventually lead to a strong sell-off.

In retrospect, you can see that the stock market is not a one-way street. In the chart, you can see a 14 percent drop in price in six weeks after a less steep sideways movement in early autumn 2023. Traders want to avoid such drawdowns at all costs.

Mastercard stock (ISIN US57636Q1040) – 1 year in daily chart; Source: aktienscreener.com

Conclusion: Even with good stocks like Mastercard, it is worth considering taking profits occasionally! A suitable time could come soon.