MasterCard Announces 10-for-1 Split, Announces $3.5B Buyback Plan, Boosts Qtr. Dividend to $1.10/Share
MasterCard Incorporated (NYSE: MA) today announced that its Board of Directors has approved several capital actions:
* A 10-for-1 stock split of the Company's common stock to be effected through a stock dividend; * An 83% increase in the Company's quarterly cash dividend to $1.10 per share ($0.11 per share after the stock split); and * A new share repurchase program authorizing the Company to repurchase up to $3.5 billion of its Class A common stock.
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, 2014. As a result of the split, shareholders will receive nine additional shares of MasterCard common stock for each share they hold as of the record date. Total shares of common stock outstanding will increase from approximately 120 million to 1.2 billion based on the Company's share count as of December 5, 2013.
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, 2014.
The new share repurchase program will become effective at the completion of the company's previously announced $2 billion share repurchase program. As of December 5, 2013, the Company had $514 million remaining under the current program authorization.
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