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A giant American payment processor raised its dividend and announced a buyback. But don’t rush out to buy the shares yet.

Finance | Mastercard shares aren’t cheap

Mastercard, a giant American payment processor, announced a brand-spanking-new $11bn share repurchase program and dividend hike earlier this week. That will be on top of the $3.5bn in shares the firm still wants to buy back from the last repurchase plan. The shares jumped 1% on the news—a muted reaction to a potential 4% reduction in share count. But buybacks are only value-accretive if the stock is cheap, and Mastercard certainly isn't. Should you follow the company and buy the stock? No, but there's also no reason to sell if you already own the shares. The firm's buyback plan will be value-neutral. Valuabl rates the shares a hold, not a buy.