MasterCard Inc. Boosts Dividend 45%; Unveils $3.75 Billion Buyback

MasterCard Inc.

boosted its quarterly dividend 45 percent and approved a new, $3.75 billion buyback program. The Purchase, N.Y. -based payments processing company traded recently at $87.66 a share, up 0.2 percent. Chief Executive Ajay Banga said the actions are a result of "continued, strong financial performance." The company last month posted a 15 percent increase in quarterly net income to $1 billion. MasterCard shares are up about 4 percent in the year to date, versus a gain of more than 11 percent for the S&P 500 Index. About a year ago, MasterCard announced a 10-for-1 stock split and a $3.5 billion buyback program. MasterCard's latest buyback authorization will become effective when its current $3.5 billion program is complete. The current program has about $275 million remaining, down from $310 million remaining as of Oct. 23. The increased dividend of $0.16 cents per share is payable Feb. 9 to holders of record Jan. 9.