Carrier Global's Quiet Dividend Strategy Deserves Attention - 24/7 Wall St.[S&P 5006,875.20 +0.40%][Dow Jones49,659.00 +0.33%][Nasdaq 10024,862.00 +0.41%][Russell 20002,663.68 +1.83%][FTSE 10010,453.70 +0.18%][Nikkei 22557,543.00 +0.92%][Stock Market Live February 13, 2026: S&P 500 (SPY) Fighting to Go Green][Investing]# Carrier Global's Quiet Dividend Strategy Deserves Attention### Quick ReadMastercard (MA) raised its quarterly dividend 14.5% to $0.87 per share for the fifth consecutive quarter.Mastercard ...

Mastercard Incorporated (NYSE:MA) is among the 12 Best Digital Currency and Payments Stocks to Buy Right Now. Mastercard Incorporated (MA) Revenue Beats Forecasts as Customers Continue to Spend As customers continued to use Mastercard Incorporated (NYSE:MA) cards for payments, the company announced fourth-quarter profitability that surpassed analyst projections, based on a January 29, 2026, Bloomberg story. Adjusted net income exceeded projections of $3.83 billion, or $4.25 per share, by $4.3 billion, or ...

Financial Performance - Net revenue for 2025 reached $32.8 billion, up 16% from the previous year, with net income also increasing by 16% to $15.0 billion, resulting in a diluted EPS of $16.52, up 19%[18] - Adjusted net revenue was $32.8 billion, reflecting a 15% increase, while adjusted net income rose to $15.4 billion, up 13%, leading to an adjusted diluted EPS of $17.01, up 15%[18] Transaction Volume - Gross dollar volume (GDV) for Mastercard-branded programs reached $10.6 trillion, with a 15% increase, and cross-border volume grew by 9%[18] - Consumer credit GDV was $3.878 billion, up 8%, while consumer debit and prepaid GDV reached $5.349 billion, up 9%[19] Strategic Priorities - The company is focusing on three strategic priorities: growing core consumer payments, diversifying into new customers and geographies, and building new areas for the future[20][21] - Mastercard aims to capture opportunities in commercial payments and disbursements through its Mastercard Move capabilities, enhancing money movement solutions[23] Technology and Security - The company is investing in technology and data to create smarter, more secure commerce solutions, emphasizing the importance of AI and data governance[30] - Mastercard employs a multi-layered security approach to protect its payment ecosystem, addressing cyber threats and ensuring transaction security[47][48] - Approximately 40% of all Mastercard transactions are now tokenized, enhancing security and user experience[67] - Mastercard launched Mastercard Threat Intelligence in 2025 to proactively detect cyberattacks and prevent payment fraud[73] Payment Network and Capabilities - Mastercard's payment network supports transactions in over 150 currencies across more than 220 countries, facilitating a secure and efficient payment process[36] - Mastercard's payment network switches over 70% of all transactions for Mastercard and Maestro-branded cards, including nearly all cross-border transactions[49] - The Mastercard Move platform enables money transfers to over 17 billion endpoints globally across more than 60 originating countries and 155 receiving countries[63] - In 2025, Mastercard embedded its virtual card technology in more than 10 global B2B and travel and expense platforms, doubling the number from 2024[63] Financial Inclusion and Social Impact - Mastercard's prepaid programs aim to drive financial inclusion for previously unbanked individuals through social security payments and unemployment benefits[54] - The company supports stablecoin transactions through approximately 130 crypto co-brand card programs, enhancing digital asset integration[67] Employee and Workforce - As of December 31, 2025, Mastercard employed approximately 39,800 persons globally, with 70% outside the U.S., and the total workforce cost was $7.3 billion[80] - Mastercard's voluntary workforce turnover was approximately 6% as of December 31, 2025, indicating a stable employee retention rate[80] Regulatory Environment - The company is subject to government regulations that impact its operations, including oversight from central banks and compliance with laws in multiple countries[107] - In July 2025, the EU introduced revised systemic importance regulations, enhancing cyber resilience and risk management requirements for systemically important payment systems[110] - Brazil's Central Bank established new regulations for Payment Scheme Operators, enhancing governance and accountability standards across the payments ecosystem[110] - Interchange fees are regulated in some jurisdictions, with caps on debit interchange and ongoing litigation affecting these fees[109] Competitive Landscape - Mastercard faces intense competition from global payment networks such as Visa, American Express, and China UnionPay, with varying market shares in different jurisdictions[100] - The company’s competitive advantages include a highly adaptable global payments network, a strong brand, and advanced technology capabilities[105] - Regulatory initiatives may lead to increased competition from alternative payment service providers and fintechs, impacting Mastercard's market share[104] Risk Management - The company monitors market risk exposures continuously and implements policies to manage funding, investments, and derivative financial instruments[332] - A hypothetical 10% adverse change in foreign currency values could result in a fair value loss of approximately $405 million and $475 million on foreign exchange derivative contracts outstanding at December 31, 2025 and 2024 respectively[334] - A hypothetical 10% adverse change in the U.S. dollar could result in a fair value loss of approximately $279 million on such contracts at December 31, 2024[336] - A hypothetical 100 basis point adverse change in interest rates would not have a material impact on the fair value of the company's available-for-sale debt investments at December 31, 2025 and 2024[337] Data Governance and Privacy - The company has established a governance framework to ensure data protection and fairness in AI applications, adhering to its Data and Tech Responsibility Principles[91] - The company has established a comprehensive privacy, data protection, and information security program to protect personal data of EEA residents under GDPR[115] - The interpretation and application of privacy and data laws are constantly evolving, requiring ongoing monitoring and governance by the company[116] Brand and Marketing Strategy - Mastercard announced a partnership with the McLaren Formula 1 Team, becoming the official naming partner starting in the 2026 season[89] - The company emphasizes a competitive compensation approach, including a global minimum standard of 10% of base pay toward retirement[87] - Mastercard's brand strategy includes managing its various brands to reinforce connectivity and value across its customer base, supported by a consistent marketing message[88] Digital Infrastructure and Innovation - The company is expanding its digital public infrastructure initiatives, which are increasingly supported by government efforts to enhance local payment systems[104] - Mastercard's open finance platform allows secure access and management of consumer data, improving customer experience and driving financial inclusion[79] - The company aims to enhance its processing capabilities in the payments value chain with an expanded suite of offerings, including ACH batch and real-time account-based payments[77] - Mastercard's data and AI initiatives focus on enhancing security, personalization, and efficiency, utilizing various data sources and advanced analytics[90]

This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. Dive Brief: Several large merchants, including Walmart, are asking a federal judge to schedule oral arguments before he rules on a proposed settlement to resolve decades of litigation with Visa and Mastercard over card interchange costs. The National Retail Federation and the Retail Industry Leaders Association wrote to U.S. District Judge Brian Cogan on Tuesday ...

Core Insights - Mastercard delivered strong Q4 2025 results, driven by steady consumer spending, higher cross-border volumes, and robust transaction growth, despite gross dollar volume slightly missing expectations [1][2] Financial Performance - Adjusted earnings per share reached $4.76, exceeding estimates by 13.3% and increasing 25% year-over-year [3] - Revenue was $8.8 billion, surpassing estimates by 0.8% and growing 18% year-over-year [3] - Gross dollar volume increased 7% to $2.82 trillion, slightly below the consensus estimate of $2.84 trillion [4] - Switched transactions rose 10%, indicating healthy transaction trends [4] Growth Drivers - Cross-border volumes grew 14% in local currency, reflecting resilient international travel and commerce [5] - The services segment saw a 26% year-over-year revenue increase to $3.9 billion, supported by acquisitions and strong organic growth [6] - Investments in fraud prevention and analytics are enhancing customer relationships and pricing power [7] Strategic Initiatives - Mastercard is focusing on next-generation payment technologies, including stablecoins and agentic commerce, to lower cross-border transaction costs [8] - The Agent Pay framework was launched to facilitate secure, automated digital transactions, with broader participation expected soon [12] - Expansion in Southeast Asia and Latin America is positioning Mastercard to benefit from rising digital adoption and financial inclusion [13] Shareholder Returns - The company returned $684 million in dividends and repurchased $3.6 billion in shares during Q4 2025 [14] - Operating cash flow for the full year reached $17.6 billion, up from $14.8 billion in the prior year [14] Future Outlook - Earnings growth is projected at 13.6% in 2026 and 15.7% in 2027, with revenues expected to rise 12.6% and 11.8%, respectively [15] - The stock has seen three upward earnings estimate revisions for 2026 recently, with no downward revisions [15] Valuation and Market Performance - Mastercard shares have declined 5.3% over the past year, outperforming the industry's 19.5% drop [20] - The stock is trading at a forward P/E ratio of 27.24X, lower than its five-year median but above the industry average [21] Conclusion - Mastercard's Q4 performance highlights the strength of its global payments franchise, with solid transaction growth and expansion in high-margin services [22] - However, near-term uncertainties related to regulatory scrutiny and rising operating costs temper upside expectations [23][26]

Group 1: Proposed Credit Card Interest Cap - The Trump administration proposed a one-year cap on credit card interest at 10% to improve affordability for Americans, targeting the financial services sector [1][2] - Credit card interest rates typically range from 25% to 30%, with Americans holding over $1.2 trillion in credit card debt, making it a politically appealing issue [2] - If implemented, the cap could lead to reduced credit availability for all but the most creditworthy borrowers and may affect popular rewards and perks associated with credit cards [3] Group 2: Impact on Credit Card Issuers - A cap on interest rates would negatively impact credit card issuers like JPMorgan Chase and Capital One, which rely on revenue from consumers carrying revolving balances [2][4] - The proposal faces significant legislative hurdles and lacks bipartisan support, with strong lobbying from the banking industry to protect financial services interests [3] Group 3: Visa and Mastercard's Position - Visa and Mastercard do not lend money or approve borrowers, thus avoiding credit risk, which positions them favorably in the event of an interest cap [4] - A reduction in credit availability could lead to lower spending on credit cards, but the likelihood of the proposal becoming law is considered very low [4] - Both companies benefit from a powerful network effect, with their cards accepted at over 150 million merchant locations, enhancing their value to both merchants and cardholders [5] Group 4: Financial Performance - Visa and Mastercard reported impressive net profit margins of 54% and 47%, respectively, during the three-month period ending December 31 [6]

Core Viewpoint - Europe urgently needs to reduce its dependence on US payment companies like Visa and Mastercard due to concerns over potential leverage in deteriorating transatlantic relations [1][2]. Group 1: Industry Dependence - The European Payments Initiative (EPI), which includes 16 European banks and financial services, highlights the heavy reliance on international payment solutions, noting the lack of cross-border alternatives despite having national assets [2]. - The European Central Bank (ECB) reported that Visa and Mastercard accounted for nearly two-thirds of card transactions in the Eurozone in 2022, with 13 member states lacking a national alternative to US networks [3]. Group 2: Political and Economic Context - As cash payments decline, European officials are increasingly concerned about the influence of US payment companies and the risks associated with this dependence in the event of political tensions [4]. - Mario Draghi, former ECB president, emphasized that deep integration has created dependencies that could be exploited, shifting interdependence from a source of mutual restraint to one of leverage and control [5]. Group 3: Initiatives and Challenges - The EPI launched Wero in 2024 as a European alternative to Apple Pay, which has gained 48.5 million users across Belgium, France, and Germany, with plans to expand into online and physical retail payments by 2027 [5][6]. - The ECB has pointed out the challenges of achieving scale through private initiatives, citing previous attempts to create competing card schemes as evidence of the difficulties in scaling [7].

Core Insights - James Nicholas achieved his first career win at the Astara Golf Championship, completing rounds of 68-65-66-66 for a total of -19 [1] - Protiviti commemorated Nicholas' victory by donating 25,000 meals through its 'Birdies for Meals' campaign, which has provided over 800,000 meals since its inception in 2021 [2] - Nicholas became a Protiviti brand ambassador in 2025, aligning his professional growth story with Protiviti's commitment to career and people development [3] Company Initiatives - Protiviti's president and CEO, Joseph Tarantino, expressed pride in supporting Nicholas and highlighted the company's commitment to helping food-insecure communities through the meal donation initiative [4] - The Birdies for Meals program reflects Protiviti's dedication to social responsibility and community support [4] Company Background - Protiviti has been recognized on the Fortune 100 Best Companies to Work For® list for 11 consecutive years, serving a significant portion of Fortune 100 and Fortune 500 companies [7] - The firm operates globally with over 90 offices in more than 25 countries, providing consulting and managed solutions across various sectors [6]

Core Insights - Mastercard Incorporated (NYSE:MA) is recognized as one of the 13 Best Extremely Profitable Stocks to Invest in Now [1] Group 1: Analyst Sentiment - BofA lowered its price target on Mastercard from $616 to $610 while maintaining a 'Neutral' rating [3] - TD Cowen raised its price target to $671 from $668, reiterating a 'Buy' rating due to strong top-line growth and stable consumer behavior [3] - JPMorgan reduced its target price to $655 from $685 while keeping an 'Overweight' rating, reflecting strong earnings and an optimistic outlook [3] Group 2: Financial Performance - Mastercard's fourth-quarter results showed adjusted EPS of $4.76, exceeding the consensus estimate of $4.25, with revenue reaching $8.81 billion [4] - Gross dollar volume grew by 7% during the quarter, supported by resilient consumer spending, while cross-border volumes increased by 14% [4] - A strategic restructuring will impact around 4% of the workforce, resulting in a $200 million charge in the current quarter to reallocate funds to priority areas [4] Group 3: Company Overview - Founded in 1966 and headquartered in Purchase, New York, Mastercard offers payment solutions through various programs under the brands Mastercard, Maestro, and Cirrus, along with cyber and intelligence services [5]

Core Insights - Berkshire Hathaway's portfolio includes significant stakes in Visa and Mastercard, valued at $2.7 billion and $2.2 billion respectively, representing 1.5% of its total portfolio [4] - Visa and Mastercard are considered safe investments due to their strong market positions and the powerful network effects they benefit from [5][8] Company Overview - Visa's current market capitalization is $632 billion, with a gross margin of 78.02% and a dividend yield of 0.74% [6][7] - Mastercard's market capitalization stands at $493 billion, with a gross margin of 96.58% and a dividend yield of 0.57% [9] Financial Performance - Both Visa and Mastercard have demonstrated double-digit annualized revenue and diluted earnings-per-share growth over the past decade [7] - Despite recent innovations in the payments sector, both companies continue to report strong financial results [7] Competitive Position - The competitive positions of Visa and Mastercard are described as nearly impossible to disrupt, providing investors with confidence [8] - Both companies have outperformed the S&P 500 index over the past decade, although they have lagged behind in the last five years [10] Growth Prospects - The ongoing shift towards cashless transactions suggests that Visa and Mastercard will continue to see significant revenue and profit growth in the future [11] - Current valuations show Visa with a price-to-earnings ratio of 30.9 and Mastercard at 32.9, indicating that while they are not cheap, they remain attractive for portfolio stability [12]