American Express (AXP) to Issue Quarterly Dividend of $0.39
American Express (NYSE:AXP) declared a quarterly dividend on Tuesday, September 25th, RTT News reports. Stockholders of record on Friday, October 5th will be given a dividend of 0.39 per share by the payment services company on Friday, November 9th. This represents a $1.56 dividend on an annualized basis and a dividend yield of 1.43%. This is a boost from American Express’s previous quarterly dividend of $0.35.
American Express has raised its dividend by an average of 10.2% annually over the last three years and has increased its dividend every year for the last 6 years. American Express has a dividend payout ratio of 19.4% meaning its dividend is sufficiently covered by earnings. Analysts expect American Express to earn $8.05 per share next year, which means the company should continue to be able to cover its $1.40 annual dividend with an expected future payout ratio of 17.4%.
Shares of American Express stock traded down $1.05 during midday trading on Wednesday, reaching $108.82. 76,602 shares of the company’s stock traded hands, compared to its average volume of 2,834,892. The company has a market capitalization of $94.59 billion, a P/E ratio of 18.67, a P/E/G ratio of 1.52 and a beta of 1.17. The company has a current ratio of 1.92, a quick ratio of 1.92 and a debt-to-equity ratio of 2.67. American Express has a 52 week low of $87.54 and a 52 week high of $111.77.
American Express declared that its board has authorized a share repurchase plan on Thursday, June 28th that allows the company to buyback $3.40 billion in outstanding shares. This buyback authorization allows the payment services company to reacquire up to 4.1% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s management believes its shares are undervalued.
A number of research firms recently issued reports on AXP. Stephens set a $97.00 target price on shares of American Express and gave the company a “hold” rating in a research note on Friday, June 29th. BMO Capital Markets raised their target price on shares of American Express from $103.00 to $106.00 and gave the company a “market perform” rating in a research note on Thursday, July 19th. Jefferies Financial Group reiterated a “hold” rating and issued a $105.00 target price on shares of American Express in a research note on Monday, July 16th. Buckingham Research upgraded shares of American Express from a “neutral” rating to a “buy” rating and raised their target price for the company from $111.00 to $112.00 in a research note on Friday, June 29th. Finally, Zacks Investment Research lowered shares of American Express from a “hold” rating to a “sell” rating in a research note on Thursday, September 20th. Two analysts have rated the stock with a sell rating, eleven have given a hold rating and fifteen have issued a buy rating to the company’s stock. American Express currently has an average rating of “Hold” and a consensus price target of $109.40.
In other American Express news, CEO Stephen J. Squeri sold 12,500 shares of the firm’s stock in a transaction on Wednesday, August 1st. The shares were sold at an average price of $99.73, for a total value of $1,246,625.00. Following the sale, the chief executive officer now directly owns 191,971 shares in the company, valued at approximately $19,145,267.83. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, major shareholder Ventures Fund Vii L.P. Vivo purchased 20,142,123 shares of the firm’s stock in a transaction on Thursday, August 30th. The stock was bought at an average price of $0.17 per share, for a total transaction of $3,424,160.91. The disclosure for this purchase can be found here. Insiders sold a total of 47,448 shares of company stock worth $4,942,168 over the last 90 days. Company insiders own 0.20% of the company’s stock.
About American Express
American Express Company, together with its subsidiaries, provides charge and credit payment card products and travel-related services to consumers and businesses worldwide. It operates through four segments: U.S. Consumer Services, International Consumer and Network Services, Global Commercial Services, and Global Merchant Services.
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