Mastercard… When Doubling a Dividend Is a Footnote (MA)

MasterCard Incorporated (NYSE: MA) is still a relatively low dividend yield, but the company has made an effort to rectify that issue.  The credit card processing giant has just doubled its dividend as the board of directors has increased the quarterly cash payout to 30 cents per share from 15 cents per share.  Doubling a dividend is great, but many investors may be wanting more ahead.

The new cash dividend will be paid out to shareholders on May 9, 2012 and the record date will be as of April 9, 2012. The company called the increase as a demonstration that it has strength in its business “as well as responsible stewardship of our capital.”

Investors may not pay much attention too much on the matter because even a doubling of the rate takes the dividend yield to 0.4%.  That is the problem of a high share price of $394.00.  Mastercard is also worth right at $50 billion in its market capitalization rate and the stock hit a new 52-week high today.