Credit Card Juggernaut Mastercard's Bold Financial Play: Dividend Hike & Massive Buyback

Yesterday, Mastercard Inc MA disclosed a dividend increase and a new share repurchase program.

The company raised its quarterly cash dividend per share by 16% to $0.66 from $0.57 earlier. 

The dividend is payable on February 9, 2024, to shareholders of record as of January 9, 2024.

Also, the Board of Directors approved a new share repurchase program, authorizing it to repurchase up to $11 billion in stock.

The new program will be effective after the completion of the company's previously announced $9 billion program (December 2022). 

As of December 1, 2023, MA had about $3.5 billion remaining under the current approved share repurchase program.

In October, MA reported Q3 FY23 net revenues of $6.53 billion, beating the consensus of $6.52 billion, and adjusted EPS rose 26% Y/Y to $3.39, exceeding the consensus of $3.21.

In Q3, Mastercard repurchased shares worth $1.9 billion and paid $538 million in dividends.

Also Read: Mastercard Partners With Feedzai To Tackle Crypto Fraud: Report

Price Action: MA shares are trading higher by 0.47% at $410.61 on the last check Wednesday.

Photo Via Company