MasterCard's Stock Gains After Dividend, Stock Buyback Program Get a Boost

MasterCard Inc.'s stock gained 0.8% in after-hours trade Tuesday, after the credit card company raised its dividend by 19% and said it increased its stock repurchase program to $4 billion. The new quarterly dividend of 19 cents a share, up from 16 cents, will be payable Feb. 9 to shareholders of record on Jan. 8. At Tuesday's closing price of $98.18, the new dividend would imply an annual dividend yield of 0.77%, well below the S&P 500 dividend yield of 2.14%, according to FactSet. The new share buyback program adds to the $786 million remaining in the previously-announced $3.75 billion program. The stock has climbed 14% year to date through Tuesday's close, while the S&P 500 has edged up 0.2%.