Analysis – MasterCard Inc. Increases Dividend by 45%

MA

MasterCard Incorporated announced a regular quarterly dividend of $0.16, a 45 percent increase from the prior rate of $0.11 per share. The dividend will be paid at the new higher rate on February 09, 2015, to shareholders of record at close of business on January 09, 2015.

Date Quarterly Dividends
1/9/2015 0.16
10/7/2014 0.11
7/7/2014 0.11
4/7/2014 0.11
1/7/2014 0.11
10/7/2013 0.06
7/5/2013 0.06
4/5/2013 0.06
1/7/2013 0.03
10/5/2012 0.03
7/5/2012 0.03
4/4/2012 0.03
1/5/2012 0.015
10/5/2011 0.015
7/6/2011 0.015
4/6/2011 0.015
1/6/2011 0.015
10/7/2010 0.015
7/1/2010 0.015
4/7/2010 0.015
1/6/2010 0.015

Analysis of Valuation of MasterCard (Symbol MA).

MasterCard is trading above its average price/book value (P/BV) range.  MasterCard is trading at the top of its average historical dividend yield. 

Price 12/03/14 % Yield 5 Year Div. Growth Rate BV    2014 P/BV Ratio 10 yr P/BV Low 10 yr P/BV  High 5 yr max Yield % 5 yr lowest Yield %
$88.32 0.50% 23% 5.60 13.11 2.29 21.48 0.50% 0.20%
MasterCard Dividend Yield Chart (Click to enlarge)

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Explanation:  Dividend growth financial stocks may be valued upon historical relative price/book value and current yield analysis. Dividend financial stocks trading at a low historical price/book value (P/BV) ratio should be viewed more highly to investors due to their depressed valuation versus other higher P/BV ratio stocks.  Max P/BV price target is based upon company reaching its highest historical P/BV ratio.  Dividend stocks should also be viewed favorably when the current yield is above historical readings for the past 10 years. Further information on evaluating dividend growth candidates can be found at http://seekingalpha.com/author/timothy-mcintosh/articles

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