American Express Is Raising Its Dividend by an Impressive 17%
The credit card giant's strong dividend hike reflects both robust earnings momentum and confidence from Amex's leadership.
Economic uncertainty hasn't seemed to have weighed on American Express (NYSE: AXP). The company recently announced a 17% increase to its quarterly dividend, lifting the payout from $0.70 to $0.82 per share. The new dividend will be payable on May 9 to shareholders of record as of April 4.
This marks Amex's fourth consecutive annual dividend increase and its largest in over a decade. The consistent pattern of dividend growth reflects management's growing confidence in the company's long-term financial strength.
Investors should sit up and take notice. Combining its fresh dividend hike for investors with its overall solid business, there's a lot to like about American Express stock at its current valuation.
