(Corrects paragraph 1 to say the stock split was 10-for-1, not
Dec 10 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
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
"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.
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.
(Reporting by Aman Shah in Bangalore; Editing by Don Sebastian,