MasterCard Split To Boost Adoption Of This Great Stock

My first submission to SeekingAlpha is pending approval!

Here is a short synopsys,

Mastercard (MA) announced a 10:1 stock split to reduce it’s share price while increasing the number of shares.

This happened last week and was well received by the market. The stock was at $765 before the news is at the neighborhood of $800 in the 7 trading days after the news, about a 4% increase.

The reasoning is that small independent investors will find it easier to directly invest in Mastercard. Today the market share of .

Mastercard is a great company, all of its vital signs are positive. It did have a challenging year back in 2008 but it’s improving ever since.

Lets look at some of the 5 year growth numbers as compared to its main competitor, Visa (V).

Company Market cap Dividend 5y EPS growth rate Return on assets (5 yr avg) Return on equity (5 yr avg)
Mastercard Inc 96B 0.55% 22 18% 36%
Visa Inc 138B 0.74% 53 9% 13%

Both companies are performing very well. Mastercard’s dividend which got a large boost of 83% in that same announcement is still lower than Visa. This is good, it gives Mastercard room to grow even more in the future.

For the rest of the article, you’ll have to wait until it is published over there!