Visa increases quarterly dividend by 20 percent

AP News
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Posted: Oct 20, 2010 4:53 PM
Visa increases quarterly dividend by 20 percent

Visa Inc. on Wednesday said its board increased its quarterly dividend by 20 percent to 15 cents.

It's the second straight year the San Francisco-based payments processor has had a "meaningful increase" in its dividend, Chairman and CEO Joseph Saunders said in a statement.

The dividend is payable Dec. 7 to holders of the company's Class A, Class B and Class C common stock as of Nov. 19.

In July, the company posted a 2 percent dip in fiscal third-quarter profit, reflecting a drop-off in investment income because of the sale of a Brazilian subsidiary a year earlier. However, revenue spiked 23 percent, and payments volume on Visa-branded cards jumped 14 percent.

Visa is due to report fiscal fourth-quarter results Oct. 27.

The company expects earnings per share growth of 20 percent or higher and revenue growth of 11 to 15 percent for the fiscal year. That implies full year earnings per share of at least $3.72, on revenue between $7.67 billion and $7.95 billion.

Analysts surveyed by Thomson Reuters, on average, expect earnings per share of $3.90 for the fiscal year, on revenue of $8.02 billion.

Visa shares closed Wednesday trading up $1.97, or 2.5 percent, at $79.52. In aftermarket trading, the stock dipped 2 cents.