Understanding Mastercard Share Split

Mastercard's share split is a significant event that can impact investors and the company's financial performance. Mastercard's board of directors approved a 10-for-1 stock split in 2020.

This move was designed to make the company's stock more accessible to individual investors. The stock split reduced the price of each share, making it more affordable for a wider range of investors to buy and own Mastercard shares.

The stock split did not change the company's market capitalization or its overall financial performance. Mastercard's market value remained the same, but the number of outstanding shares increased tenfold.

MasterCard announced a 10-for-1 stock split, which will make its shares more affordable for individual investors.

The split will be effective after market close on January 9, and shareholders will receive their nine additional shares on January 21.

This will increase the total number of shares outstanding from 120 million to 1.2 billion.

MasterCard's share price has risen significantly since its IPO in 2006, and the company is now one of the highest-priced stocks in the S&P 500.

The share price is currently up 2.5% to $783.00 in after-hours trading following the news.

MasterCard's quarterly dividend is also increasing by 83%, to $1.10 per share, or 11 cents per share after the split.

This is in line with a trend of companies adding to dividends as improved earnings leave them with large cash piles.

MasterCard has doubled its dividend twice since May 2012, after several years at 15 cents per share.

The company is also issuing a new $3.5 billion share buyback program, which will take effect when the company completes its current program.

This program will help boost the company's earnings per share.

Here's a comparison of MasterCard's historical stock splits, dividends, and split-adjusted IPO price:

The 10-for-1 split will push the shares below $80, but MasterCard's market value will remain steady due to the increase in outstanding shares.

Mastercard has a long history of growth, with its share price rising to among the highest on the market since its IPO in 2006.

The company has a strong track record of increasing its dividend, with a 83% increase to its quarterly dividend in recent news, bringing it to $1.10 per share.

Mastercard has doubled its dividend twice since May 2012, after several years at 15 cents per share.

The company has also shown confidence in its financials by issuing a new $3.5 billion share buyback program, which will take effect when the company completes its current program.

Here's a brief summary of Mastercard's historical stock splits and dividends:

Mastercard's stock split in 2013 somewhat obscured a large dividend increase, with the company declaring a $0.11 per share dividend, which represented an 83% increase over the company's $0.60 per share dividend paid before the stock split.

A 10-for-1 split allows more investors to buy MasterCard's stock by making it less expensive to buy individual shares.

Theoretically, a lower share price makes it more accessible to a wider range of investors.

If MasterCard had never split its shares, a single share would trade for about $970 today.

This is a significant difference for individual investors, especially those who prefer to buy and sell stocks in lots of 100 shares, known as "round lots".

By splitting its shares 10-for-1, a round lot of 100 shares of MasterCard stock is worth just $9,700 today.

This makes it easier for individual investors to participate in the market.

As a result, the split is designed to widen the potential pool of investors.

MasterCard's steadily rising profits have driven its stock price up nearly twentyfold since its initial public offering price of $39 in May 2006.