American Express Board Authorizes Share Repurchase Plan, Announces 15 Percent Dividend Increase

Rhea-AI Summary

The Board of Directors of American Express Company (NYSE: AXP) has approved the repurchase of up to 120 million common shares, replacing the previous authorization of 36 million shares. This buyback aligns with the company's capital strategy, pending Federal Reserve review. Additionally, a $0.08 or 15% increase in the quarterly dividend has been sanctioned, raising it from $0.52 to $0.60 per share, payable on May 10, 2023. This increase is in line with previous plans announced in the fourth-quarter 2022 earnings release.

Positive

• Share repurchase of up to 120 million shares could enhance shareholder value.
• Dividend raised by 15% signals confidence in financial performance.

Negative

• None.

NEW YORK--(BUSINESS WIRE)-- The Board of Directors of American Express Company (NYSE: AXP) approved the repurchase of up to 120 million common shares, in accordance with the company’s capital plans that are, from time to time, reviewed and not objected to by the Federal Reserve. This authorization replaces the approximately 36 million common shares of common stock remaining from the previous Board authorization in 2019.

The timing and amount of common shares purchased under the company’s authorized capital plans will depend on various factors, including the company’s business plans, financial performance and market conditions.

Separately, the Board of Directors approved a $0.08 – or 15 percent – increase in the quarterly dividend on the company’s common stock, consistent with the planned increase discussed in the company’s fourth-quarter 2022 earnings release. The dividend was raised to $0.60 per common share, from $0.52, payable on May 10, 2023, to shareholders of record on April 7, 2023.

ABOUT AMERICAN EXPRESS

American Express is a globally integrated payments company, providing customers with access to products, insights and experiences that enrich lives and build business success. Learn more at americanexpress.com and connect with us on facebook.com/americanexpress, instagram.com/americanexpress, linkedin.com/company/american-express, twitter.com/americanexpress, and youtube.com/americanexpress.

Key links to products, services and corporate sustainability information: personal cards, business cards and services, travel services, gift cards, prepaid cards, merchant services, Accertify, Kabbage, Resy, corporate card, business travel, diversity and inclusion, corporate sustainability and Environmental, Social, and Governance reports.

Source: American Express Company

Location: Global

View source version on businesswire.com: https://www.businesswire.com/news/home/20230308005766/en/

Media:

Andrew R. Johnson, Andrew.R.Johnson@aexp.com, +1.212.640.8610

Investors/Analysts:

Kerri S. Bernstein, Kerri.S.Bernstein@aexp.com, +1.212.640.5574

Michelle A. Scianni, Michelle.A.Scianni@aexp.com, +1.212.640.5574

Source: American Express Company

FAQ

What is the repurchase plan for American Express (AXP) shares?

American Express has approved a repurchase plan for up to 120 million shares, replacing the previous authorization for 36 million shares.

When will the new dividend for American Express (AXP) be paid?

The new dividend of $0.60 per share will be paid on May 10, 2023, to shareholders of record on April 7, 2023.

What was the percentage increase in the American Express (AXP) dividend?

The dividend was increased by 15%, from $0.52 to $0.60 per share.

How does the share buyback affect American Express (AXP) stock?

The share buyback is expected to enhance shareholder value by reducing the number of shares outstanding.