Another year, another dividend raise. That has been the strategy of payment card giant Mastercard (MA -0.10%) for over a decade now, and in December it maintained that tradition with another increase in its payout for stockholders. The increase was accompanied by news of a massive stock buyback program, so Mastercard will spend much of 2025 doling out capital for stock price-supporting measures.Let's unpack whether these changes support the buy case for the company.Impressive news ... at least at first glan ...

Mastercard Inc. (NYSE: MA ) is a solid investment that I think the market is undervaluing. People seem to think the payments industry isn’t growing much anymore or they’re worried about inflation and how it is making people spend less. ButMotti Sapir is an economist and financial analyst with over 15 years of experience in financial markets. He holds a degree in economics and has a talent for simplifying complex financial concepts into plain English. His focus is on uncovering market trends, analyzing data, ...

Mastercard (NYSE: MA ) shares have been an absolute success for long-term investors, and I believe they will continue to do so. Since 2018, the stock has crushed the SP500 with more than 260% total returns, well above the general index with just around 150%. This translatesI am a dedicated financial risk manager and investor specializing in financials, consumer, and technology industries. I have been involved in the investing world for over seven years, making deep analyses and managing different types of p ...

Mastercard has finalized its previously announced acquisition of threat intelligence company Recorded Future.The acquisition will add threat intelligence and artificial intelligence (AI)-powered, actionable analytics to Mastercard’s cybersecurity capabilities, Mastercard said in a Friday (Dec. 20) press release. It will also provide the company with opportunities to serve different customer sets and enhance the effectiveness of its existing products and services.“As the world becomes more digitized, there’s ...

Mastercard (NYSE: MA) has been riding in a strong upward channel since 2021, consistently delivering steady returns to investors. However, recent technical indicators suggest a potential shift in momentum.Notably, an analysis by TradingShot points to emerging bearish signals, raising concerns about a near-term pullback.Bearish divergence and key levelsWhile Mastercard’s price has maintained its position within a long-term bullish channel, the one-day Relative Strength Index (RSI) is now showing signs of wea ...

POLAND - 2024/11/17: In this photo illustration, the Mastercard company logo is seen displayed on a ... [+] smartphone screen. (Photo Illustration by Piotr Swat/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesMastercard’s stock (NYSE: MA) is up approximately 25% year-to-date compared to the 27% rise in the S&P500 index over the same period. In comparison, Mastercard’s peer Visa (NYSE: V) has returned about 22%. So what are some of the factors driving Mastercard stock higher? ...

Payment processing juggernaut Mastercard Incorporated (MA) has announced a new share buyback program of $12 billion, which will become effective after completing its previously announced $11 billion program. It had around $3.9 billion left from the current program as of Dec. 13, 2024.Mastercard also announced a 15.2% increase in its quarterly cash dividend to 76 cents per share from 66 cents paid out earlier. The increased amount will be paid out on Feb. 7, 2025, to its shareholders on record as of Jan. 9, ...

Core Points - Mastercard Inc has announced a quarterly cash dividend increase of 15%, raising it from 66 cents to 76 cents per share [1][2] - The new dividend will be paid on February 7, 2025, to shareholders of record as of January 9, 2025 [2] - The company has authorized a new share repurchase program of up to $12 billion, which will commence after completing the current buyback program [2] - As of December 13, Mastercard had approximately $3.9 billion remaining under its existing repurchase program [2] - Mastercard shares rose by 0.71% in after-hours trading, reaching $534 [3]

Group 1: Mastercard Inc. (MA) - Mastercard shares outperformed Visa shares over the past year with a growth of +25.6% compared to Visa's +19.9%, but lagged behind the broader market which grew +30.5% [3] - The company expects low-teens net revenue growth in Q4 2024, driven by acquisitions that expand addressable markets and new revenue streams [3] - The accelerated adoption of digital and contactless solutions is providing opportunities for business growth [3] - However, steep operating expenses and high rebates may stress margins in the future [4] Group 2: The Procter & Gamble Co. (PG) - Procter & Gamble shares have outperformed the Zacks Consumer Products - Staples industry over the past year with a growth of +14.9% compared to the industry's +10.1% [5] - The company is benefiting from a strategy focused on sustainability and adaptability, responding to evolving consumer demands [5] - Procter & Gamble is implementing productivity and cost-saving plans to boost margins [5] - The company faces headwinds from market issues in Greater China, geopolitical tensions, and currency volatility [6] Group 3: Novartis AG (NVS) - Novartis shares have underperformed the Zacks Large Cap Pharmaceuticals industry over the past two years, growing +8.7% compared to the industry's +15.0% [7] - The loss of patent protection for key drugs like Gleevec/Glivec and Diovan is a significant concern, facing increasing generic competition [7] - Legal setbacks in blocking generic versions of its heart drug Entresto have also impacted the company [7] - Despite challenges, Novartis maintains strong momentum with a diverse portfolio including drugs like Entresto and Kisqali, with new drug approvals aiding growth [8] Group 4: IDT Corp. (IDT) - IDT's shares have outperformed the Zacks Diversified Communication Services industry over the last six months with a growth of +40.5% compared to the industry's -1.5% [9] - The company's growth strategy focuses on high-growth segments such as digital payments and international remittances [9] - Cost controls have boosted profitability, and IDT is well-positioned in digital and cashless payment trends [9] - However, competition and regulatory compliance pressures may impact profitability, along with challenges from the decline in legacy communications [10] Group 5: GSI Technology, Inc. (GSIT) - GSI Tech's shares have outperformed the Zacks Computer – Storage Devices industry over the last six months with a growth of +4.1% compared to the industry's -26.5% [11] - The introduction of Gemini-I APU servers has improved the company's prospects, and expansion into government contracts diversifies revenue [11] - The upcoming Gemini-II development aims to enhance data processing efficiency [11] - Challenges include a significant drop in core SigmaQuad sales and dependency on major customers, which introduces revenue volatility [12]

Core Viewpoint - Mastercard is highlighted as a significant investment opportunity within Warren Buffett's portfolio, showcasing impressive growth and profitability metrics that may appeal to investors [1][3]. Company Overview - Mastercard has a massive market capitalization of $482 billion, with a total return of 12,470% since its IPO in 2006, turning a $1,000 investment into $126,000 today [2]. Growth Drivers - The company benefits from a global shift from cash to digital payments, with revenue increasing from $2.2 billion in Q3 2014 to $7.4 billion in the latest quarter [4]. - Growth is fueled by rising transaction volumes and an increase in the number of cards in circulation, positioning Mastercard as the second-largest payment processor in the U.S. [5]. Profitability - Mastercard maintains a high operating margin, averaging 56.1% over the past five years, and generated over $9.9 billion in cash flow from operations in the last nine months [6]. Competitive Advantages - The company possesses a strong economic moat due to powerful network effects, with a card base of 3.1 billion and approximately 130 million merchant locations accepting Mastercard [7]. - Mastercard is somewhat insulated from disruption by fintech and cryptocurrencies, continuing to grow due to its entrenched position in the economy [8]. Regulatory Environment - While card networks face regulatory scrutiny due to their dominant market positions, the current presidential administration's more relaxed regulatory approach may benefit Mastercard [9]. Valuation Considerations - As of now, Mastercard trades at a price-to-earnings ratio (P/E) of 40, which is higher than its trailing-10-year average, suggesting that while it is a quality business, investors should consider waiting for potential pullbacks before purchasing [10][11].