Visa hikes dividend by 47 percent to 22 cents

AP News
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Posted: Oct 19, 2011 8:57 AM
Visa hikes dividend by 47 percent to 22 cents

Visa Inc. it is increasing its quarterly dividend by 47 percent.

The payment processing network operator on Wednesday said it will pay shareholders of its Class A common stock a dividend of 22 cents, up from 15 cents.

Visa has increased its dividend for three straight years, more than doubling it since going public in 2008.

The dividend is payable Dec. 6 to shareholders of record as of Nov. 18.

Visa, based in San Francisco, is due to report its fiscal fourth-quarter financial results next week. Analysts, on average, are expecting profit of $1.25 per share, on revenue of $2.4 billion, according to data provided by FactSet.

In June, the company said it had $3.6 billion of cash and equivalents on hand.

The company authorized a new $1 billion share repurchase program during its fiscal third quarter. In the three months ended June 30, the company repurchased roughly 13.7 million shares for a total $1.1 billion.

Visa is also increasing dividends for its Class B and Class C shareholders.

The company set its annual meeting for Jan. 31. Shareholders of record as of Dec. 31 will be able to vote at the meeting.

Class A shares closed Tuesday trading at $93.91, up 33 percent for the year.