10 Best GARP Stocks That Pay Dividends

2. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders: 131

Mastercard Incorporated (NYSE:MA) is an American credit card company that offers a wide range of payment processing and related services to its consumers. The company posted strong earnings in the fourth quarter of 2024, prompting Raymond James to maintain an Outperform rating on the stock and raise its price target from $614 to $640. The firm highlighted MasterCard’s consistent performance, noting that while initial guidance may lead to lower projections, this is primarily due to changes in foreign exchange rates and transaction-related operating costs.

In the fourth quarter of 2024, Mastercard Incorporated (NYSE:MA) generated revenue of $7.5 billion, a 14% increase compared to the same quarter last year. The company’s net income for the quarter was $3.5 billion, up from $3 billion in the previous year. By December 31, 2024, a total of 3.5 billion Mastercard and Maestro-branded cards had been issued to customers.

Mastercard Incorporated (NYSE:MA) ended the quarter with a solid cash position, holding over $8.4 billion in cash and cash equivalents, while total assets surpassed $19.7 billion. In fiscal year 2024, the company generated $14.7 billion in operating cash flow, up from $12 billion in 2023. This financial strength allowed it to return $2.4 billion to shareholders through dividends over the year. With 13 years of consecutive dividend growth, MA is considered one of the best GARP stocks that pay dividends. Currently, it pays a quarterly dividend of $0.76 per share and has a dividend yield of 0.54%, as of February 14.