We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Mastercard (MA) Reveals Quarterly Dividends: What We Think
Read MoreHide Full Article
Mastercard Incorporated (MA - Free Report) recently announced that its board has authorized a quarterly cash dividend of 57 cents per share. The amount remained unchanged sequentially. The dividend will be paid on Aug 9, 2023, to stockholders of record as of Jul 7, 2023.
This will mark the third quarterly cash dividend payment of 57 cents per share and a year-over-year increase of 16.3%. Going by the trend and the company’s solid operations, more shareholder-friendly moves are likely to come in the following days. It has a lower-than-industry dividend yield, leaving high dividend growth prospects.
Let’s delve deeper.
Based on the closing price of $377.42 per share on Jun 26, the stock has a dividend yield of 0.6%, which is lower than the industry average of 0.8%. In the first quarter, it paid $545 million in dividends. Also, in the first quarter, MA bought back 8 million shares for $2.9 billion. It had $8.7 billion remaining under its share buyback program as of Apr 24, 2023. Its strong financial position enables it to take shareholder-friendly moves.
In the trailing 12-month period, its free cash flow grew 0.8% to $10.2 billion. Mastercard exited the first quarter with cash and cash equivalents of $6.6 billion, which stands way higher than the current portion of long-term debt ($276 million). Given its prudent operations, its financial strength is likely to grow more in the future.
The economic volatility is expected to decrease in the coming days as conditions improve, which will enable MA to maintain its momentum. The high inflation environment had somewhat held back spending growth and as the inflationary pressures are expected to diminish going forward, massive opportunities will come for companies like Mastercard.
The cross-border volume growth is expected to continue supporting MA’s operations. The metric jumped 35% year over year (on a local currency basis) in the first quarter. Gross dollar volume or GDV was $2,108 billion in the first quarter, up 15% year over year on a local-currency basis. Our estimate for total GDV for 2023 indicates a nominal year-over-year jump of 4.6%, which will further support its top-line growth.
Price Movements
Shares of Mastercard have gained 14.8% in the past year compared with the industry’s 4.8% rise.
Headquartered in San Francisco, Visa is a global payments technology giant. The Zacks Consensus Estimate for Visa’s current year earnings indicates a 14.5% year-over-year increase.
London-based Paysafe is a digital commerce solutions provider for different businesses. The Zacks Consensus Estimate for PSFE’s 2023 earnings has improved more than 240% in the past 60 days.
Based in Seattle, WA, Remitly Global is a digital financial services provider. The Zacks Consensus Estimate for RELY’s 2023 earnings suggests 7.4% year-over-year growth.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Mastercard (MA) Reveals Quarterly Dividends: What We Think
Mastercard Incorporated (MA - Free Report) recently announced that its board has authorized a quarterly cash dividend of 57 cents per share. The amount remained unchanged sequentially. The dividend will be paid on Aug 9, 2023, to stockholders of record as of Jul 7, 2023.
This will mark the third quarterly cash dividend payment of 57 cents per share and a year-over-year increase of 16.3%. Going by the trend and the company’s solid operations, more shareholder-friendly moves are likely to come in the following days. It has a lower-than-industry dividend yield, leaving high dividend growth prospects.
Let’s delve deeper.
Based on the closing price of $377.42 per share on Jun 26, the stock has a dividend yield of 0.6%, which is lower than the industry average of 0.8%. In the first quarter, it paid $545 million in dividends. Also, in the first quarter, MA bought back 8 million shares for $2.9 billion. It had $8.7 billion remaining under its share buyback program as of Apr 24, 2023. Its strong financial position enables it to take shareholder-friendly moves.
In the trailing 12-month period, its free cash flow grew 0.8% to $10.2 billion. Mastercard exited the first quarter with cash and cash equivalents of $6.6 billion, which stands way higher than the current portion of long-term debt ($276 million). Given its prudent operations, its financial strength is likely to grow more in the future.
The economic volatility is expected to decrease in the coming days as conditions improve, which will enable MA to maintain its momentum. The high inflation environment had somewhat held back spending growth and as the inflationary pressures are expected to diminish going forward, massive opportunities will come for companies like Mastercard.
The cross-border volume growth is expected to continue supporting MA’s operations. The metric jumped 35% year over year (on a local currency basis) in the first quarter. Gross dollar volume or GDV was $2,108 billion in the first quarter, up 15% year over year on a local-currency basis. Our estimate for total GDV for 2023 indicates a nominal year-over-year jump of 4.6%, which will further support its top-line growth.
Price Movements
Shares of Mastercard have gained 14.8% in the past year compared with the industry’s 4.8% rise.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Mastercard currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Business Services space are Visa Inc. (V - Free Report) , Paysafe Limited (PSFE - Free Report) and Remitly Global, Inc. (RELY - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Headquartered in San Francisco, Visa is a global payments technology giant. The Zacks Consensus Estimate for Visa’s current year earnings indicates a 14.5% year-over-year increase.
London-based Paysafe is a digital commerce solutions provider for different businesses. The Zacks Consensus Estimate for PSFE’s 2023 earnings has improved more than 240% in the past 60 days.
Based in Seattle, WA, Remitly Global is a digital financial services provider. The Zacks Consensus Estimate for RELY’s 2023 earnings suggests 7.4% year-over-year growth.