MasterCard to Split Stock 10:1, Raise Dividend

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

MasterCard MC[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.

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