American Express (AXP) Announces $0.82 Quarterly Dividend, 17% Year-over-Year Increase
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- Dividend Growth: American Express's quarterly dividend stands at $0.82, reflecting a 17% year-over-year increase and over 90% growth in the past five years, indicating strong profitability and commitment to shareholder returns.
- Share Buybacks: In Q3, American Express repurchased approximately $2.3 billion worth of shares, with total buybacks exceeding $25 billion, demonstrating confidence in its value and ongoing capital management strategy.
- Strong Profitability: With Q3 earnings per share at $4.14, the dividend payout accounts for only 19%, and full-year EPS is projected between $15.20 and $15.50, ensuring ample support for dividend payments and continued business investments.
- Attracting Young Customers: About 64% of new accounts were opened by millennials and Gen Z, who transact 25% more than other customers, showcasing American Express's successful positioning in the younger market and potential for future growth.
Analyst Views on AXP
Wall Street analysts forecast AXP stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for AXP is 351.42 USD with a low forecast of 280.00 USD and a high forecast of 400.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
21 Analyst Rating
7 Buy
12 Hold
2 Sell
Hold
Current: 357.370
Low
280.00
Averages
351.42
High
400.00
Current: 357.370
Low
280.00
Averages
351.42
High
400.00
About AXP
American Express Company is a globally integrated payments company with card-issuing, merchant-acquiring and card network businesses. It offers products and services to a range of customers, including consumers, small businesses, mid-sized companies and large corporations around the world. Its segments include U.S. Consumer Services (USCS), Commercial Services (CS), International Card Services (ICS) and Global Merchant and Network Services (GMNS). USCS offers travel and lifestyle services as well as banking and non-card financing products. CS offers payment and expense management, banking and non-card financing products. ICS provides services to international customers, including travel and lifestyle services, and manages certain international joint ventures and its loyalty coalition business. GMNS operates a payments network that processes and settles card transactions, acquires merchants and provides multichannel marketing programs and capabilities, services and data analytics.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
