MasterCard provides transaction processing and other payment-related products and services in the United States and internationally. It facilitates the processing of payment transactions, including authorization, clearing, and settlement, as well as delivers related products and services. The company also offers value-added services, such as loyalty and reward programs, and information and consulting services. The company offers payment solutions and services under the MasterCard, Maestro, and Cirrus brands. MasterCard was founded in 1966 and is headquartered in Purchase, New York.
MasterCard has maintained a solid three-year growth rate of dividends of 38.7 percent. MasterCard currently ranks 10th in yield within the large cap services, business services category. The quarterly dividend for the February payment will be $0.22 versus the prior year rate of $0.19 per share. MasterCard Inc. is not a member of our Top 100 Dividend Stock List (see below).
The dividend will be paid at the new higher rate on February 9, 2017, to shareholders of record at close of business on January 9, 2017. MasterCard is currently priced at $104.82. Listed in the table below are the quarterly dividend payments since 2010.
We examine MasterCard upon our five key criteria, which include;
|Dividend Growth (3 to 6 year avg)||49%||21|
|S&P Financial Rating||A||120|
Additional quantitative information on P/BV ratio and historical yield;
|% Yield||3 Year Div. Growth Rate||6 Year Div. Growth Rate||BV 2016||P/BV Ratio||10 yr P/BV Low||10 yr P/BV High||5 yr lowest Yield %||5 yr max Yield %|
- MasterCard maintains an investment grade credit rating and a current dividend yield (0.84%) its five-year maximum.
- MasterCard has maintained a three year growth rate of dividends of 38.7 percent.
- MasterCard is trading above its ten-year average price/sales (P/BV) ratio.
- MasterCard’s dividend yield is below that of the S&P 500 Index.
- MasterCard maintains a beta of 1.05, higher than the average company.
Latest Earnings & Overall Analysis:
MasterCard issued its earnings data on October 28th. The company reported $1.08 EPS for the quarter, topping the consensus estimate of $0.98 by $0.10, and was up 19% year over year, excluding special items. The company had revenue of $2.9 billion in Q3, surpassing estimates of $2.74 billion. MasterCard maintains a solid return on equity of 64.3%.
MasterCard Inc. Dividend Yield Chart (Click to enlarge)
Chart Explanation: Dividend growth stocks may be viewed favorably when the current yield is above historical readings for the past 5 years.