Mastercard (MA +0.44%) isn't exactly a high-dividend stock, with a 0.6% yield as of this writing. However, there's more to any dividend stock than its current yield. With that in mind, here's a look at Mastercard's dividend payout, its dividend history, and the stock's total return it has generated for investors.
NYSE: MA
Key Data Points
Mastercard's dividend payout
We'll start with the shortest answer. Mastercard's current dividend payout is $2.64 per share, per year. This means that if you own 100 shares of Mastercard, your dividend income will be $264 per year, which would arrive in your brokerage account in quarterly installments.
Mastercard's dividend history
Although the current payout results in a low 0.6% yield, it's also important to note that this fintech stock has an excellent history of increasing the payout every year.
The payments giant has increased its dividend for 12 consecutive years. Over the past decade, the dividend has grown by 500%, an annualized growth rate of about 20%. If this rate were to continue going forward, Mastercard could become a much higher-yielding dividend stock in the future.
Mastercard's total return
It's important for all dividend investors to understand that there are two components of a stock's performance -- the dividend itself and share price increases. Collectively, these make up a stock's total return.
Over the past 10 years, Mastercard has generated a 552% total return for investors, compared with just 227% for the S&P 500. So, although Mastercard has a below-average dividend yield, it has delivered market-beating performance on a total return basis.
