American Express Co. (AXP), the biggest credit-card issuer by customer spending, plans to boost its quarterly dividend 11 percent and may repurchase as much as $5 billion of its stock within the next year.
The Federal Reserve didn’t object to AmEx’s capital plan, which included increasing the quarterly payout by 2 cents, to 20 cents a share, the New York-based company said today in a regulatory filing. The lender may buy back $4 billion of shares this year and an additional $1 billion in the first quarter of 2013, according to the filing.
“The actual number of shares that will be repurchased will be based on the company’s business plans, financial performance and market conditions,” AmEx said.
To contact the reporter on this story: Dawn Kopecki in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Peter Eichenbaum at email@example.com