MasterCard to Split Stock 10:1, Raise Dividend

by Christopher Freeburn | December 11, 2013 9:29 am

MasterCard to Split Stock 10:1, Raise Dividend

MasterCardLogo MasterCard to Split Stock 10:1, Raise Dividend[1]Shares of MasterCard (MA[2]) climbed almost 4% in pre-market trading on Wednesday after the company said it would raise its dividend and conduct its first stock split[3] 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.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2010/08/MasterCardLogo.jpg
  2. MA: http://studio-5.financialcontent.com/investplace/quote?Symbol=MA
  3. would raise its dividend and conduct its first stock split: http://www.washingtonpost.com/business/mastercard-to-split-stock-raise-dividend-83-pct/2013/12/10/2def1e9c-61e6-11e3-a7b4-4a75ebc432ab_story.html

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