CORRECTED-UPDATE 1-MasterCard to split shares; raises dividend by 83 pct
(Corrects paragraph 1 to say the stock split was 10-for-1, not 1-for-10)
Dec 10 (Reuters) - MasterCard Inc, the world's No.2 credit and debit card company, announced a 10-for-1 stock split and raised its quarterly dividend by 83 percent, sending its shares up 3 percent to their life-high in extended trading.
The company, which also announced a new $3.5 billion buyback program, raised its quarterly dividend by 50 cents to $1.10 per share.
Wedbush Securities analyst Gil Luria said Tuesday's actions were an indication of the management's confidence in the company's performance and the continued share appreciation.
MasterCard's shares have gained almost 60 percent this year as more people use cards for transactions across the world.
Shares of the company, which went public at $39 per share more than seven years ago, closed at $763.61 on the New York Stock Exchange on Tuesday. They touched $785 in trading after the bell.
"Given the nominal value of shares, it makes sense to do the stock split and make it more affordable, especially for retail investors," Luria told Reuters.
At its Tuesday close, MasterCard was the third most expensive stock of the S&P500 Index behind Priceline.com Inc and Google Inc.
As a result of the stock split, MasterCard shareholders will get nine additional shares for each share they hold as of Jan. 9, 2014.
The company also said the new share buyback will be effective on the completion of the existing $2 billion repurchase program, which has $514 million remaining as of Dec. 5. (Reporting by Aman Shah in Bangalore; Editing by Don Sebastian, Maju Samuel)
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