MasterCard Raises Quarterly Dividend by 83%, But Some Analysts Say Hold On

MasterCard (NYSE: MA) seems to get better and better. The credit card company announced an 83 percent increase its in quarterly dividend, a 10-for-1 stock split and a $3.5 billion share repurchase program last week.

Despite all the good news, there are some analysts who don't think MasterCard is a buy.

Janney Capital Markets Analyst Tom McCrohan told Barron's that he thinks MasterCard is overpriced. McCrohan expects MasterCard's share price will fall in the near future and he advised investors to wait to buy it.

In Thursday's trading, MasterCard seemed to justify McCrohan's statement. Shares fell slightly by $6.66, or .84 percent, to $783.91. That means MasterCard might not reach the $800 valuation some observers have expected any time soon.

Related: Post Office Expands Same-Day Delivery Test to New York

Despite the pessimism, MasterCard is still one of the biggest successes in the market. Barron's noted ts share price increased by 60 percent in 2013. The stock will also deliver a $1.10 a share dividend with the 83 percent increase announced by management.

At least some of MasterCard's share growth is being driven by an aggressive share buyback program.The company has a $2.5 billion stock repurchase in effect, in addition to the $3.5 billion repurchase program announced last week. The $3.5 billion program will start when the $2.5 billion one ends.

Barron's didn't say MasterCard was a buy but it did recommend that shareholders hold onto the stock.

Posted-In: Janney Capital Tom McCrohanEarnings Long Ideas News Short Ideas Dividends Barron's Economics Hot Markets Media Trading Ideas Best of Benzinga

(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  Most Popular Short Sellers Climb Aboard The Twitter Train (GRPN, TWTR, ZNGA) MasterCard Announces 10-for-1 Split, Announces $3.5B Buyback Plan, Boosts Qtr. Dividend to $1.10/Share Biogen Idec, Pharmacyclics See Surges In Short Interest (BIIB, CELG, PCYC) A High-Yield Blue Chip on the Pink Sheets? Five Basing Stocks That Could Move Higher Why Google Wants To Plant a Microchip In Your Head Related Articles (MA) MasterCard Raises Quarterly Dividend by 83%, But Some Analysts Say Hold On Benzinga's Volume Movers Stocks Hitting 52-Week Highs Stocks To Watch For December 11, 2013 MasterCard Announces 10-for-1 Split, Announces $3.5B Buyback Plan, Boosts Qtr. Dividend to $1.10/Share Stocks Hitting 52-Week Highs Around the Web, We're Loving... Lightspeed Trading Presents: Thunder and Tubleweeds: Trading Techniques for the New Market Enviroment Pope Francis Rips 'Trickle-Down' Economics Come See How the Pro's Trade in this Exclusive Webinar Wynn, MGM, Other Casino Giants Vying For U.S. Turf What Should You Know About AMZN? View the discussion thread.