American Express (AXP, Financial) has announced a quarterly dividend of 32 cents with an ex-dividend date of April 5. The dividend is unchanged from the previous two quarters. American Express currently has a forward dividend yield of 1.62%.
The stock is selling for $79. Its year-to-date return is 6.76%, and its one-year return is 28.81%. It has a three-year return of -12.57% and a five-year return of 36.70%.
On Jan. 19, the company reported its fourth-quarter and full-year earnings results for 2016. Revenue for the quarter was $8.02 billion, beating estimates by $70 million and decreasing 4.4% from the comparable quarter. Earnings for the quarter were 91 cents, missing estimates by 7 cents.
For the year revenue was $30.93 billion, an increase from $29.36 billion in 2015. Unadjusted earnings per share were $5.65, an increase from $5.05 in 2015. Adjusted earnings per share for the year were $5.93 and excluded restructuring charges related to cost reduction efforts.
Recent activity influencing American Express includes an ongoing competitive battle for top rewards points in the credit card industry. Initiatives for 2017 include stock buybacks and more integration of its cost savings plans. A new personal loan product for existing customers is also helping to give the company a more positive outlook.
American Express is a top holding of Warren Buffett's Berkshire Hathaway (BRK.A, Financial)(BRK.B, Financial) which owns 16.85%. The portfolio accounts for approximately 8% of the total assets under management. Other fund managers with significant ownership include Vanguard with 5.40%, State Street with 4.39%, Dodge & Cox with 3.19%, Barrow, Hanley, Mewhinney & Strauss with 1.87% and First Eagle Investment (Trades, Portfolio) with 1.77%.
Disclosure: I do not own any shares of American Express.
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