This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

American Express Plans To Increase Quarterly Dividend By 15 Percent And Buy Back Up To $4.0 Billion Of Common Shares In 2013

American Express Company (NYSE: AXP) said today that the Board of Governors of the Federal Reserve System did not object to its 2013 capital plan to increase the Company’s quarterly dividend to 23 cents per share, to repurchase up to $3.2 billion of common shares during the last three quarters of 2013 and to repurchase up to an additional $1.0 billion in the first quarter of 2014. The Company also said that it expects to repurchase approximately $800 million of common shares during the first quarter of 2013 under the Company’s 2012 capital plan.

The dividend increase would amount to 3 cents per share, or 15 percent. The share repurchases in 2013 would be in line with the amounts that were actually repurchased last year under the 2012 capital plan. Dividends and share repurchases are subject to approval by the Company’s board of directors.

As indicated in the Federal Reserve report issued earlier today, the 2013 capital plan would generate a minimum Tier 1 common ratio of 6.42 percent under the Federal Reserve’s “severely adverse stress scenario” during the nine-quarter forecasting period through the fourth quarter of 2014.

The 2013 capital plan revises an initial plan that was submitted to the Federal Reserve by American Express in January of this year. The initial plan had included a quarterly dividend of 23 cents, share repurchases of up to $4.7 billion during the last three quarters of 2013 and up to $1 billion in the first quarter of next year.

The Company prepared the initial plan using the Federal Reserve’s severe stress scenario, and basing it on the Company’s own internal analysis of operating performance. This internal analysis yielded a minimum Tier 1 common ratio of 9.2 percent during the forecasting period, above the 5 percent minimum threshold established by the Federal Reserve. However, the Federal Reserve, using its own models and analysis, concluded that the Company’s initial plan would have generated capital ratios below the minimum thresholds for at least one quarter during the nine-quarter forecasting period. Under the Federal Reserve’s guidelines, and as indicated in the Federal Reserve report issued earlier today, the Company revised and resubmitted its plan.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,960.57 -123.23 -0.72%
S&P 500 1,978.34 -9.64 -0.48%
NASDAQ 4,449.5640 -22.5440 -0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs