Mastercard Raises Cash Dividend To $0.76 Per Share, Announces $12B Repurchase Program: Retail Chatter Shoots Up
Synopsis
The buyback program will become effective at the completion of the firm’s previously announced $11 billion program. As of Dec. 13, 2024, the company had approximately $3.9 billion remaining under the current approved share repurchase program.
Shares of Mastercard Inc (MA) were in the spotlight on Wednesday after the firm’s board of directors declared a quarterly cash dividend of $0.76 per share, and a new share repurchase program.
The cash dividend represents a 15% increase over the previous dividend of $0.66 per share and will be paid on Feb. 7, 2025 to holders of record of its Class A common stock and Class B common stock as of Jan. 9, 2025.
The company’s new share buyback program authorizes it to repurchase up to $12 billion of its Class A common stock.
The program will become effective at the completion of the firm’s previously announced $11 billion program. As of Dec. 13, 2024, the company had approximately $3.9 billion remaining under the current approved share repurchase program.
Mastercard shares closed in the green on Tuesday and traded over 0.5% higher in Wednesday’s pre-market session.
Following the announcement, retail sentiment on Stocktwits flipped into the ‘bullish’ territory (57/100) from ‘neutral’ a day ago. The move was accompanied by ‘extremely high’ message volume (79/100) that hit a one-year high.
Recently, Jefferies reportedly raised the firm's price target on MasterCard to $610 from $590, while keeping a ‘Buy’ rating on the shares.
The firm projects that no incremental pricing would be needed in 2025 for MasterCard to reach 12% organic transaction processing fee growth, while only 50 points of incremental pricing would be required to hit 13% growth.
Meanwhile, Keefe Bruyette raised its price target on the stock to $618 from $580, while keeping an ‘Outperform’ rating on the shares.
Notably, shares of Mastercard have gained over 25% since the beginning of the year and are currently trading near their lifetime highs.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
Stay updated with all the latest Business News, including market trends, Share Market News, stock updates, taxation, IPOs, banking, finance, real estate, savings, and investments. Track daily Gold Price changes, updates on DA Hike, and the latest developments on the 8th Pay Commission. Get in-depth analysis, expert opinions, and real-time updates to make informed financial decisions. Download the Asianet News Official App from the Android Play Store and iPhone App Store to stay ahead in business.