Summary
American Express Company (AXP) announced on March 14, 2013, that the Federal Reserve did not object to their capital return plans. This includes significant share repurchases totaling up to $3.2 billion for the remainder of 2013 and $1.0 billion in early 2014. Additionally, the company intends to increase its quarterly dividend to $0.23 per share, commencing with the second quarter 2012 dividend declaration, pending board approval. These capital return initiatives are aligned with American Express's long-standing objective to return approximately 50% of its generated capital to shareholders over time through dividends and share buybacks. The company also indicated its intention to utilize Rule 10b5-1 trading plans to facilitate repurchases, ensuring flexibility during trading blackout periods. Investors can find further details in the furnished press release and information regarding the company's stress test results on the Investor Relations website.
Key Highlights
- 1Federal Reserve approval received for capital return plans.
- 2Planned share repurchases of up to $3.2 billion in 2013 and $1.0 billion in Q1 2014.
- 3Intention to increase quarterly dividend to $0.23 per share, effective from Q2 2012 dividend declaration.
- 4Capital return strategy aims to distribute approximately 50% of generated capital to shareholders over time.
- 5Use of Rule 10b5-1 trading plans to facilitate share repurchases.
- 6Further details available in a press release dated March 14, 2013.
- 7Stress test results under Regulation YY to be published on the Investor Relations website.