AmEx is considered a stable dividend-paying stock. Unlike other financial services companies, AmEx did not cut dividends during the recession. In the second quarter of FY13, the company increased its quarterly dividends 15% from $0.2 to $0.23. The current annual dividend per share is $0.86, while the dividend yield is 1.1%. This is lower than American Express’s five year average dividend yield of 1.81%. AmEx also has a current dividend payout ratio of 19%, while the 10 year average dividend payout ratio is 21%. The debt-to-equity ratio, currently 295%, has been steadily declining since the recession, improving the company’s ability to pay dividends.
American Express Dividend History
American Express is considered a stable dividend-paying stock. This impression was reinforced when, unlike other financial services companies, AmEx did not cut dividends during the recession. In the second quarter of FY13, the company increased its quarterly dividend by 15% from $0.2 to $0.23.
Dividend per Share in 2013: $0.86
One-year Dividend Growth: 10.26%
Five-year Dividend Growth: 3.62%
Current Dividend Yield: 1.04%
Five-year Average Dividend Yield: 1.81%
Current Dividend Coverage Ratio: 5.48x. The dividend coverage ratio is a measure of a company’s ability to meet its dividend payment obligations, and AmEx seems to be in a comfortable position to pay its dividends.
Ten year average dividend payout ratio is 21%
AmEx’s current debt to equity ratio is 295%. The ratio has been declining steadily since the financial crisis, and indicates that American Express is not as leveraged as it used to be.