NEW YORK - American Express Company (NYSE:AXP) has announced an increase in its quarterly dividend, marking a significant move for shareholders. The board has approved a $0.12 hike, translating to a 17 percent rise from the previous dividend, aligning with the company’s strategy outlined in its Q4 2024 earnings report. This increase continues the company’s impressive 55-year streak of maintaining dividend payments, with the current yield standing at 0.93%.
Starting May 9, 2025, the dividend will be $0.82 per common share, up from $0.70, for shareholders on record as of April 4, 2025. This decision reflects the company’s robust financial performance, with a 9.3% revenue growth and impressive 34% return on equity over the last twelve months.
American Express, a leading global payments company, offers a wide range of products and services that support customers in managing their finances and gaining valuable business insights. The company is recognized for providing experiences that enrich lives and contribute to business success.
The information regarding the dividend increase is based on a press release statement from American Express.
In other recent news, American Express has issued $3 billion in new notes as part of its financing strategy. The offering includes $1.45 billion of 5.085% fixed-to-floating rate notes due in 2031, $1.25 billion of 5.442% fixed-to-floating rate notes maturing in 2036, and $300 million of floating rate notes also due in 2031. This move aims to provide the company with additional capital and reflects proactive management of its capital structure. In another development, RBC Capital Markets increased its price target for American Express from $330 to $350, maintaining an Outperform rating. This decision followed the company’s recent fourth-quarter earnings report, which showed solid core results, increased revenue, and stable credit quality.
Additionally, American Express announced the departure of Anré Williams, Group President of Enterprise Services, after a 35-year tenure. Williams will transition from his role in February 2025 and continue as Senior Executive Advisor until November 2025. The company has not yet named a successor. Moreover, the appointment of Treasury Secretary Scott Bessent as acting director of the Consumer Financial Protection Bureau could impact American Express and other credit card companies. Bessent’s role is expected to lead to the suspension of certain regulatory rulings, potentially benefiting financial firms. These recent developments highlight significant changes and strategic moves within American Express.
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