American Express raises dividend by 10%

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American Express Company announced a regular quarterly dividend of $0.32, a 10 percent increase from the prior rate of $0.29 per share. The dividend will be paid at the new higher rate on November 10, 2016, to shareholders of record at close of business on October 7, 2016. American Express Co. is a member of the Top 100 dividend  candidates.

Listed in the table below are the quarterly dividend payments since 2010. Our analysis of American Express as a Top 100 Dividend Stock candidate is listed below;

top-100

Date Quarterly Dividend
10/7/2016 0.32
6/29/2016 0.29
4/6/2016 0.29
1/6/2016 0.29
10/7/2015 0.29
6/30/2015 0.29
3/31/2015 0.26
1/7/2015 0.26
10/1/2014 0.26
7/9/2014 0.26
4/2/2014 0.23
1/8/2014 0.23
10/2/2013 0.23
7/2/2013 0.23
4/3/2013 0.2
1/2/2013 0.2
10/3/2012 0.2
7/3/2012 0.2
4/3/2012 0.2
1/4/2012 0.18
10/5/2011 0.18
6/29/2011 0.18
4/6/2011 0.18
1/5/2011 0.18
10/6/2010 0.18
6/30/2010 0.18
3/30/2010 0.18
1/7/2010 0.18

Analysis of American Express is based upon our five key criteria for the Top 100 list, which include; 

Category Value Score
Dividend Yield 1.80 170
Dividend Growth (5 year VL) 13% 87
Trailing P/E 11.3 24
S&P Financial Rating A++ 40
Beta 1.00 125
Total Ranking 446

Additional Information;

Price 9/28/16 % Yield 5 Year Div. Growth Rate  BV    2016 P/BV Ratio 10 yr P/BV Low 10 yr P/BV  High 5 yr max Yield % 5 yr lowest Yield %
$64.22 1.80% 13% 38.60 2.88 0.80 7.0 2.15% 0.95%

Final Analysis;

  • American Express dividend yield is on average with that of the S&P 500 Index and is also trading towards the higher end of its average historical dividend yield.
  • American Express maintains a 5 year dividend growth rate of 13%   This is lower than 10 other companies in the sector and ranks 87 among all companies.
  • American Express is trading below its average price/book value (P/BV) range at 2.88.  From a relative valuation perspective, American Express is undervalued based upon its historical trading history.
  • American Express maintains a credit rating of A++. This is above investment grade, a positive.

Based upon its low P/BV ratio, solid dividend growth, and high credit rating, American Express qualifies as one of our Top 100 Dividend Stocks.

American Express Co. Dividend Yield Chart (Click to enlarge) axp3

Chart Explanation:  Dividend growth stocks may be viewed favorably when the current yield is above historical readings for the past 5 years.

Further information on dividend investing and evaluating dividend growth candidates can be found at http://seekingalpha.com/author/timothy-mcintosh/articles

2 thoughts on “American Express raises dividend by 10%

    1. Yes, thanks for commenting on the Amex note. Its still undervalued and ranked in the top 50 of our 100 list. The company continues to pay out solid dividend increases each year.

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