MasterCard Announces Stock Split, Lifts Dividend

(RTTNews) - Card processor MasterCard Inc. (MA) said Tuesday its board has approved a host of capital actions including a 10-for-1 stock split of its common stock to be effected via a stock dividend, and an 83 percent increase in quarterly cash dividend to $1.10 per share ($0.11 per share after the stock split).

The board also approved a new share buyback program authorizing the company to repurchase up to $3.5 billion of its Class A common stock. "Today's actions reflect our ongoing commitment to deliver shareholder value as well as our confidence in the long-term growth and financial performance of our Company," said CEO Ajay Banga in a statement.

MasterCard said the record date for the 10-for-1 stock split is the close of business on January 9, 2014, with share distribution scheduled for January 21. Shareholders will receive nine additional shares of MasterCard common stock for each share they hold as of the record date.

The higher quarterly dividend of $1.10 per share on a pre-split basis, up from $0.60 per share, is to be paid February 10, 2014 to shareholders of record as of January 9.

The new share repurchase program will become effective at the completion of the earlier announced $2 billion share repurchase program. As of December 5, 2013, the company had $514 million remaining under the current authorization.