PURCHASE, N.Y. - Mastercard Incorporated (NYSE: NYSE:MA), a financial services giant with a market capitalization of $487 billion, has raised its quarterly cash dividend by 15 percent and announced a new share repurchase program. The dividend, now set at 76 cents per share, is an increase from the previous 66 cents, marking its 13th consecutive year of dividend increases according to InvestingPro data. Payment is scheduled for February 7, 2025, to stockholders recorded as of January 9, 2025.
In addition to the dividend increase, the company's Board of Directors has approved a new $12 billion share repurchase program. This program is set to commence following the completion of Mastercard's current $11 billion buyback plan, which, as of Sunday, had $3.9 billion remaining. The company's strong financial position, evidenced by its GREAT Financial Health Score on InvestingPro, supports these shareholder-friendly initiatives.
Mastercard, a global technology company in the payments industry, operates in over 200 countries and territories. The firm's efforts are centered on fostering a sustainable economy by promoting secure and accessible digital payment solutions.
The company's forward-looking statements indicate that the repurchase program's specifics, such as the number of shares to be bought back and the timing, will depend on market conditions and share price. Mastercard has made it clear that they do not commit to updating these statements or aligning them with actual results or changes in expectations.
This financial update is based on a press release statement from Mastercard Incorporated. The company's actions reflect its ongoing commitment to return value to its shareholders and its confidence in the long-term growth of the business. With revenue growth of 11.7% and trading near its 52-week high of $536.75, Mastercard continues to demonstrate strong market performance. For deeper insights into Mastercard's valuation and growth prospects, including access to the comprehensive Pro Research Report covering 1,400+ top stocks, visit InvestingPro.
In other recent news, Mastercard Inc. has taken significant steps towards resolving a legal claim in the UK, which accused the company of imposing unjustly high fees on card transactions. The settlement details remain undisclosed, but it signifies Mastercard's intention to move past the case. In addition, Mastercard has been under scrutiny by the European Commission over fees charged to retailers, and both Mastercard and Visa (NYSE:V) are cooperating with the investigation.
On the financial front, Mastercard has reported a robust 14% increase in net revenues and a 13% rise in adjusted net income in the third quarter of 2024, driven mainly by a surge in consumer spending and cross-border volume. The company has also set ambitious financial objectives for 2025 to 2027, targeting high growth in net revenue and earnings per share.
Several analysts have shown confidence in Mastercard's future performance. TD Cowen, Mizuho (NYSE:MFG), and BMO Capital have raised their price targets for Mastercard to $567, $570, and $565 respectively, while Susquehanna maintained a positive rating and raised the price target to $605. These recent developments reflect the company's strategic direction and financial performance.
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