MasterCard doubles dividend, to buy back $2 billion of shares

PURCHASE, N.Y. Tue Feb 5, 2013 — MasterCard Inc. doubled its quarterly cash dividend and said it would buy back up to $2 billion of its Class A shares, days after the card payment network reported strong fourth-quarter results helped by its performance in emerging markets.

The new buyback program will become effective after the company completes its existing $1.5 billion repurchase program, which had about $440 million remaining as of Jan. 25.

MasterCard shares were up 1.4 percent before the bell.

The new dividend of 60 cents per share effectively returns $75 million to shareholders every quarter, based on 124 million shares outstanding as of Jan. 31.