MasterCard: The Dividend Does It?

In recent years Mastercard (MA) has given investors plenty of holiday cheer, and that continued Monday when it announced its latest dividend increase.

ON-CJ086_master_D_20171205113914.jpg Getty Images

The company has made similar moves every December in recent years. Its board declared a quarterly dividend of 25 cents a share, up 13.6% from 22 cents. The stock, which yields 0.6%, has gained 1% to $144.91 at 10:26 a.m. this morning.

The higher dividend adds a little spice to a strong year for shareholders, as the stock has returned about 40% in 2017, nearly double the S&P 500's performance. Mastercard has been helped by strong earnings.

In its third quarter, the company earned $1.34 a share, up from $1.08 a year earlier, on a revenue gain of 18% to about $3.4 billion.

The company appears to have plenty of room to continue hiking its dividend. Its payout ratio last year was quite low at 20.1%.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing
Referenced Symbols: MA

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