Mastercard Plans to Double Dividend

It will also repurchase up to $2 billion in shares

Feb 5, 2013, 11:57 am EDT | By Christopher Freeburn, InvestorPlace Writer

MasterCard (NYSE:MA) is looking to return more cash to its investors.

The second largest credit card issuer plans a two-fold increase to its quarterly dividend, payable in April, marking the second dividend hike in the last year, Bloomberg noted. It’s board has also approved a new share buyback program valued at up to $2 billion.

The new share repurchase program is scheduled to commence after the completion of its existing $1.5 billion buyback plan.

Last week, the company announced higher customer spending during the fourth quarter, and announced earnings that topped Wall Street estimates. Its profit for 2012 jumped to $2.8 billion, up 15% from 2011.

MasterCard’s move follows rival Visa (NYSE:V), which increased its quarterly dividend by 50% in December.

Shares of MasterCard rose fractionally in Tuesday morning trading.

Article printed from InvestorPlace Media, http://investorplace.com/2013/02/mastercard-doubles-dividend/.