Mastercard Incorporated (NYSE:MA) Shares Will Pay Quarterly Dividend of $0.87

Mastercard Incorporated (NYSE:MA) declared a quarterly dividend on Tuesday, September 29th. Shareholders of record on Friday, October 9th will be given a dividend of $0.87 per share by the credit services provider on Monday, November 9th. This represents a $3.48 annualized dividend and a dividend yield of 0.6%. The ex-dividend date is Friday, October 9th.

Mastercard has raised its dividend payment by an average of 0.1%annually over the last three years and has increased its dividend annually for the last 13 consecutive years. Mastercard has a payout ratio of 18.7% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Mastercard to earn $22.93 per share next year, which means the company should continue to be able to cover its $3.48 annual dividend with an expected future payout ratio of 15.2%.

Mastercard Price Performance

Shares of Mastercard stock opened at $563.80 on Wednesday. Mastercard has a 52-week low of $464.52 and a 52-week high of $601.23. The stock has a market capitalization of $493.90 billion, a price-to-earnings ratio of 31.01, a price-to-earnings-growth ratio of 1.62 and a beta of 0.74. The company has a fifty day moving average of $570.49 and a 200-day moving average of $527.60. The company has a debt-to-equity ratio of 3.96, a quick ratio of 1.06 and a current ratio of 1.06.

Mastercard (NYSE:MA) last issued its earnings results on Thursday, July 30th. The credit services provider reported $5.04 EPS for the quarter, topping analysts’ consensus estimates of $4.77 by $0.27. The company had revenue of $9.28 billion for the quarter, compared to analysts’ expectations of $9.08 billion. Mastercard had a net margin of 46.34% and a return on equity of 239.99%. The firm’s revenue was up 14.1% compared to the same quarter last year. During the same quarter last year, the company earned $4.15 EPS. Equities research analysts expect that Mastercard will post 19.9 EPS for the current year.

Insider Activity

In other news, insider Sandra A. Arkell sold 200 shares of the stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $540.00, for a total transaction of $108,000.00. Following the completion of the sale, the insider directly owned 3,322 shares in the company, valued at approximately $1,793,880. This represents a 5.68% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Linda Kirkpatrick sold 4,280 shares of the firm’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $570.31, for a total value of $2,440,926.80. Following the completion of the sale, the insider directly owned 31,179 shares in the company, valued at $17,781,695.49. The trade was a 12.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 69,795 shares of company stock valued at $40,009,906. 0.09% of the stock is owned by corporate insiders.

Institutional Trading of Mastercard

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Cardano Risk Management B.V. grew its holdings in shares of Mastercard by 861.6% during the 4th quarter. Cardano Risk Management B.V. now owns 4,072,210 shares of the credit services provider’s stock worth $2,324,743,000 after acquiring an additional 3,648,748 shares during the period. Fundsmith LLP bought a new stake in shares of Mastercard in the 2nd quarter worth approximately $639,458,000. Corient Private Wealth LP raised its stake in Mastercard by 147.2% during the second quarter. Corient Private Wealth LP now owns 1,682,183 shares of the credit services provider’s stock valued at $863,969,000 after buying an additional 1,001,671 shares during the last quarter. Capital International Investors raised its position in shares of Mastercard by 4.4% in the 4th quarter. Capital International Investors now owns 17,964,658 shares of the credit services provider’s stock worth $10,256,368,000 after purchasing an additional 759,584 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership raised its position in shares of Mastercard by 30.8% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 3,111,652 shares of the credit services provider’s stock worth $1,776,380,000 after purchasing an additional 733,101 shares during the last quarter. Hedge funds and other institutional investors own 97.28% of the company’s stock.

About Mastercard

Mastercard Incorporated (NYSE: MA) is a global payments technology company that operates a network connecting consumers, financial institutions, merchants, governments and businesses. The company facilitates the authorization, clearing and settlement of electronic payment transactions, while generally not issuing cards or extending credit itself. Its network supports payments made in stores, online and through mobile devices.

Mastercard’s products and services include consumer and commercial payment cards, digital payment solutions, payment processing, fraud prevention, cybersecurity, identity verification, data and analytics, and open banking tools.