By Michael Calia
MasterCard Inc. said Tuesday that its board increased the
credit-card company's dividend and approved a new share-buyback
program.
The company said it boosted its dividend by 45% to 16 cents a
share, putting the yield at about 0.7%.
MasterCard's new buyback program is pegged at $3.75 billion. It
will take effect once the company's existing $3.5 billion plan
winds down. The company said it had about $275 million remaining on
the plan as of Dec. 1.
The move comes as the company, along with rival Visa Inc., has
delivered stronger financial performances lately, as more consumers
rely on credit cards over cash payment options.
MasterCard in October posted profit and revenue that topped
analysts' expectations, driven by a surge in purchase volume.
The company's shares have risen about 25% since mid-October.
Write to Michael Calia at michael.calia@wsj.com
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