Mastercard Board of Directors Announces Quarterly Dividend and $12 Billion Share Repurchase Program

Rhea-AI Summary

Mastercard (NYSE: MA) announced two significant shareholder-focused initiatives. The Board of Directors declared a quarterly cash dividend of 76 cents per share, marking a 15% increase from the previous 66 cents per share. This dividend will be paid on February 7, 2025, to both Class A and Class B stockholders of record as of January 9, 2025. Additionally, the Board approved a new $12 billion share repurchase program, which will commence after the completion of the current $11 billion program. As of December 13, 2024, approximately $3.9 billion remained under the current program.

Positive

• 15% increase in quarterly dividend from $0.66 to $0.76 per share
• New $12 billion share repurchase program authorized
• $3.9 billion still remaining from previous $11 billion buyback program

Negative

• None.

Insights

Financial Analyst

The dual announcement of a 15% dividend hike to $0.76 per share and a massive $12 billion share repurchase program signals Mastercard's robust financial health and commitment to shareholder returns. The dividend increase, well above inflation, demonstrates confidence in sustainable cash flow generation. With $3.9 billion still remaining from the previous buyback program, the total potential return to shareholders exceeds $15.9 billion.

This aggressive capital return strategy reflects Mastercard's strong market position and cash-generating capabilities. The company's asset-light business model and high operating margins continue to produce substantial free cash flow, enabling these shareholder-friendly actions while maintaining flexibility for strategic investments. The timing and size of these programs suggest management sees the stock as undervalued while expressing optimism about future growth prospects.

Market Research Analyst

This substantial capital return package positions Mastercard favorably against competitors in the payments space. The 15% dividend boost outpaces the financial sector average and reinforces Mastercard's status as a premium growth and income stock. The new $12 billion buyback authorization represents approximately 2.5% of current market capitalization, providing meaningful support for the stock price.

The announcement's timing, ahead of 2024, demonstrates management's confidence in the company's growth trajectory despite macroeconomic uncertainties. The payment network's strong competitive moat, increasing digital payment adoption and cross-border recovery continue to drive robust financial performance. These shareholder returns complement Mastercard's growth strategy while maintaining strategic flexibility for investments in technology and market expansion.

PURCHASE, N.Y.--(BUSINESS WIRE)-- Mastercard Incorporated (NYSE: MA) today announced that its Board of Directors has declared a quarterly cash dividend of 76 cents per share, a 15 percent increase over the previous dividend of 66 cents per share. The cash dividend will be paid on February 7, 2025 to holders of record of its Class A common stock and Class B common stock as of January 9, 2025.

The Board of Directors also approved a new share repurchase program, authorizing the company to repurchase up to $12 billion of its Class A common stock.

The new share repurchase program will become effective at the completion of the company’s previously announced $11 billion program (December 2023). As of December 13, 2024, the company had approximately $3.9 billion remaining under the current approved share repurchase program.

About Mastercard Incorporated (NYSE: MA), www.mastercard.com
Mastercard powers economies and empowers people in 200+ countries and territories worldwide. Together with our customers, we’re building a sustainable economy where everyone can prosper. We support a wide range of digital payments choices, making transactions secure, simple, smart and accessible. Our technology and innovation, partnerships and networks combine to deliver a unique set of products and services that help people, businesses and governments realize their greatest potential.

Forward Looking Statements
Statements in this press release which are not historical facts are forward-looking and subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “believe”, “expect”, “could”, “may”, “would”, “will”, “trend” and similar words are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements relating to the manner and amount of purchases by Mastercard pursuant to its share repurchase program dependent upon price and market conditions, as well as Mastercard’s future prospects, developments and business strategies. Forward-looking statements speak only as of the date they are made, and the company undertakes no duty to update any forward-looking statements made in this press release or to conform such statements to actual results or changes in the company’s expectations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241217074044/en/

Mastercard Investor Relations

Jud Staniar, 914-249-4565

investor.relations@mastercard.com

Mastercard Communications

Seth Eisen, 914-249-3153

Seth.Eisen@mastercard.com

Source: Mastercard Investor Relations

FAQ

What is Mastercard's new quarterly dividend per share for 2025?

Mastercard's new quarterly dividend is 76 cents per share, a 15% increase from the previous 66 cents per share, payable on February 7, 2025.

How much is Mastercard's (MA) new share repurchase program worth?

Mastercard's new share repurchase program is worth $12 billion and will begin after the completion of the current program.

When will Mastercard (MA) pay its increased dividend to shareholders?

Mastercard will pay the increased dividend of 76 cents per share on February 7, 2025, to shareholders of record as of January 9, 2025.

How much remains in Mastercard's (MA) current share repurchase program?

As of December 13, 2024, approximately $3.9 billion remains under Mastercard's current share repurchase program.

What is the percentage increase in Mastercard's (MA) quarterly dividend?

Mastercard increased its quarterly dividend by 15%, from 66 cents to 76 cents per share.