Summary
American Express Company (AXP) announced on March 11, 2015, that the Board of Governors of the Federal Reserve System did not object to its capital return plans. This includes a significant share repurchase program of up to $6.6 billion, set to commence in the second quarter of 2015 and continue through the second quarter of 2016. In addition to buybacks, the company intends to increase its quarterly dividend by approximately 11.5%, from $0.26 to $0.29 per share, starting with the second quarter of 2015, pending board approval. These actions signal confidence in the company's financial health and commitment to returning value to shareholders.
Key Highlights
- 1Federal Reserve approval received for capital return plans.
- 2Authorized share repurchases of up to $6.6 billion.
- 3Share repurchase period: Q2 2015 through Q2 2016.
- 4Quarterly dividend to increase from $0.26 to $0.29 per share.
- 5Dividend increase effective starting Q2 2015, subject to Board approval.
- 6Company may utilize Rule 10b5-1 trading plans for share repurchases.
- 7Press release dated March 11, 2015, attached as Exhibit 99.1.