Mastercard Incorporated (NYSE:MA) Plans $0.76 Quarterly Dividend

Mastercard Incorporated (NYSE:MA) announced a quarterly dividend on Monday, February 10th, RTT News reports. Investors of record on Wednesday, April 9th will be paid a dividend of 0.76 per share by the credit services provider on Friday, May 9th. This represents a $3.04 annualized dividend and a yield of 0.62%. The ex-dividend date is Wednesday, April 9th.

Mastercard has increased its dividend by an average of 14.8% per year over the last three years and has increased its dividend annually for the last 13 consecutive years. Mastercard has a payout ratio of 16.2% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Mastercard to earn $18.61 per share next year, which means the company should continue to be able to cover its $3.04 annual dividend with an expected future payout ratio of 16.3%.

Mastercard Price Performance

Shares of NYSE MA opened at $489.94 on Monday. The company has a market capitalization of $446.68 billion, a price-to-earnings ratio of 35.27, a PEG ratio of 2.37 and a beta of 1.06. The company has a debt-to-equity ratio of 2.68, a current ratio of 1.03 and a quick ratio of 1.03. Mastercard has a 1-year low of $428.86 and a 1-year high of $582.23. The business has a 50-day moving average of $550.92 and a 200-day moving average of $528.50.

Mastercard (NYSE:MA) last posted its quarterly earnings data on Thursday, January 30th. The credit services provider reported $3.82 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.71 by $0.11. Mastercard had a net margin of 45.71% and a return on equity of 188.47%. On average, equities analysts anticipate that Mastercard will post 15.91 EPS for the current fiscal year.

Analyst Ratings Changes

A number of brokerages recently commented on MA. Citigroup increased their price target on Mastercard from $584.00 to $650.00 and gave the company a “buy” rating in a report on Friday, January 31st. Oppenheimer dropped their price target on shares of Mastercard from $591.00 to $588.00 and set an “outperform” rating for the company in a research note on Thursday, December 19th. Royal Bank of Canada boosted their target price on shares of Mastercard from $572.00 to $650.00 and gave the stock an “outperform” rating in a research report on Friday, January 31st. Keefe, Bruyette & Woods boosted their price objective on Mastercard from $618.00 to $665.00 and gave the company an “outperform” rating in a report on Friday, January 31st. Finally, Monness Crespi & Hardt raised Mastercard from a “neutral” rating to a “buy” rating and set a $640.00 target price on the stock in a report on Friday, January 31st. Four research analysts have rated the stock with a hold rating, twenty-four have given a buy rating and two have assigned a strong buy rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $606.11.

Mastercard announced that its Board of Directors has authorized a stock repurchase plan on Tuesday, December 17th that allows the company to buyback $12.00 billion in shares. This buyback authorization allows the credit services provider to purchase up to 2.5% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s board of directors believes its shares are undervalued.

Insiders Place Their Bets

In related news, CEO Michael Miebach sold 15,775 shares of the stock in a transaction on Wednesday, March 26th. The stock was sold at an average price of $550.16, for a total value of $8,678,774.00. Following the completion of the transaction, the chief executive officer now owns 84,871 shares in the company, valued at $46,692,629.36. This trade represents a 15.67 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Edward Grunde Mclaughlin sold 7,132 shares of the company’s stock in a transaction dated Wednesday, March 19th. The shares were sold at an average price of $534.68, for a total transaction of $3,813,337.76. Following the sale, the insider now directly owns 34,524 shares of the company’s stock, valued at $18,459,292.32. This represents a 17.12 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.10% of the stock is owned by company insiders.

Institutional Investors Weigh In On Mastercard

An institutional investor recently raised its position in Mastercard stock. Brighton Jones LLC lifted its stake in Mastercard Incorporated (NYSE:MA) by 42.3% in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 6,824 shares of the credit services provider’s stock after purchasing an additional 2,028 shares during the quarter. Brighton Jones LLC’s holdings in Mastercard were worth $3,594,000 as of its most recent filing with the Securities and Exchange Commission (SEC). 97.28% of the stock is currently owned by institutional investors and hedge funds.

Mastercard Company Profile

Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. The company offers integrated products and value-added services for account holders, merchants, financial institutions, digital partners, businesses, governments, and other organizations, such as programs that enable issuers to provide consumers with credits to defer payments; payment products and solutions that allow its customers to access funds in deposit and other accounts; prepaid programs services; and commercial credit, debit, and prepaid payment products and solutions.