Shares of MasterCard (MA) climbed almost 4% in pre-market trading on Wednesday after the company said it would raise its dividend and conduct its first stock split since going public in 2006.
On Tuesday, the credit card issuers said it would split its shares 10-for-1 on Jan. 21. The split could send MasterCard shares — which closed on Tuesday at $763.61 — under $80 a share. In the last seven years, the stock has soared almost twenty times higher than its $39 a share IPO price, the Associated Press notes.
The company is also increasing its quarterly dividend by 83%, raising the dividend from 60 cents to $1.10. The stock split will dilute the dividend payment — which will happen on Feb. 10 — to 11 cents per share.
In addition to the higher dividend and stock split, MasterCard said it had also authorized another $3.5 billion for share repurchases.
MasterCard has a market capitalization of about $92 billion.