MasterCard Inc., the second-largest U.S. payments network, raised its quarterly divided 45 percent to 16 cents a share and announced a new stock repurchase program.
The company may buy back as much as $3.75 billion of its stock after completing a current $3.5 billion repurchase program, the Purchase, New York-based firm said today in a statement.
MasterCard is boosting payouts as more consumers shift from cash to electronic payments. Last December, the company announced the current repurchase program as well as an 83 percent dividend increase and a 10-for-1 stock split.
The dividend will be paid on Feb. 9 to shareholders as of Jan. 9, according to the statement. As of yesterday, the bank- card network had about $275 million remaining under its current repurchase program, the firm said.
MasterCard reversed losses after the announcement. The shares gained 0.1 percent to $87.55 at 12:42 p.m. in New York after falling as low as $86.54. MasterCard has advanced 4.8 percent this year. The stock has returned more than 1,800 percent, including dividends, since MasterCards 2006 initial public offering.