Summary
American Express Company (AXP) announced on June 28, 2018, a significant capital return plan to shareholders, following the Federal Reserve's non-objection to their capital plan. This plan includes an increase in the quarterly dividend and a substantial share repurchase program. Key components of the plan involve raising the quarterly dividend to $0.39 per share, effective from the third quarter of 2018, subject to Board approval. Additionally, AXP intends to repurchase up to $3.4 billion of its common shares over the period spanning the third quarter of 2018 through the second quarter of 2019. The company has the flexibility to execute these repurchases through 10b5-1 trading plans, allowing for purchases even during blackout periods, underscoring a commitment to returning value to shareholders.
Key Highlights
- 1Federal Reserve did not object to American Express's capital return plan.
- 2Quarterly dividend per share is set to increase to $0.39, beginning in Q3 2018 (subject to Board approval).
- 3AXP plans to repurchase up to $3.4 billion of common shares.
- 4Share repurchase period is from Q3 2018 through Q2 2019.
- 5Company may use Rule 10b5-1 trading plans for repurchases.
- 6This indicates confidence in financial strength and commitment to shareholder value.