Mastercard Raises Quarterly Dividend

Mastercard Inc. is boosting its quarterly dividend by 3 cents a share and setting aside an additional $4 billion to buy back stock.

Both moves are in line with increases the company made a year ago to its dividend and buyback plan. The Purchase, N.Y.-based company has about $1.3 billion left under that authorization and a market capitalization of about $114 billion.

The first payout of 22 cents a Class A share will be made on Feb. 9 to holders of record as of Jan. 9.

Mastercard's profit has risen 7% for the first nine months of the year, helped by an increase in transactions along with higher volumes.

But the company, which traditionally made the bulk of business by processing transactions, is expanding beyond traditional credit and debit cards. In September, it struck a deal with PayPal Holdings Inc. to increase digital transactions, including money transfers.

Shares, up 5% this year, gained 76 cents in after-hours trading to $102.76.

Write to Maria Armental at [e-mail]

(END) Dow Jones Newswires

December 06, 2016 17:55 ET (22:55 GMT)

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