>>> Mastercard (MA) is a payment processing company with a total of around 3.4 billion debit and credit cards issued worldwide. The business is one of two dominant payment companies in the world with the other being Visa, and had a market share of 27.4% in the U.S. back in 2022, up from its five-year average of 22%, according to Nilson Report.
Mastercard boasts solid financials with revenue rising from $18.9 billion in 2021 to $25.1 billion in 2023. Net income jumped from $8.7 billion to $11.2 billion over the same period, and the business is also highly free-cash-flow generative with an average of $9.9 billion churned out over the three years. Mastercard also increased its quarterly dividend by 16% year over year to $0.66 at the end of last year, representing more than a decade of consecutive dividend increases.
The strong performance has continued in the first half of 2024. Mastercard saw its revenue rise 10% year over year to $13.3 billion while net income shot up 20.4% year over year to $6.3 billion. The good results were attributed to robust consumer spending and a tourism rebound that saw cross-border transaction volume climb 17% year over year for the second quarter of 2024. Free cash flow came in at $4.1 billion, inching up 2.6% year over year from $4 billion in the previous comparative period.
With Mastercard's solid reputation and track record, I am confident that the business can continue to grow steadily over the years while increasing its dividends along the way.
News 
Market Data 
Discover 
AI
