Can American Express Keep Up With Its Swelling Dividend?
Briefly

Can American Express Keep Up With Its Swelling Dividend?
"American Express paid $2.271 billion in dividends in 2025 against $15.0 billion in free cash flow and $10.83 billion in net income. On a per-share basis, the $3.80 annual payout against FY2025 EPS of $15.38 consumes about a quarter of profits."
"CEO Stephen Squeri said on the Q1 2026 call: 'We delivered 10 percent FX-adjusted revenue growth and 18 percent EPS growth in the quarter. Our credit performance remained excellent.'"
"The recent two-year cadence of 17% and 16% increases is the fastest stretch in years, indicating strong operational momentum and confidence in future growth."
American Express will pay a dividend of $0.95 per share starting May 8, 2026, following a 16% increase. The company paid $2.271 billion in dividends in 2025, with a payout ratio of about 21.6% based on FY2026 EPS guidance. The balance sheet shows $32.42 billion in equity against $265.13 billion in liabilities, with cash reserves exceeding the dividend obligations. American Express has not cut its dividend since 1999, and management expresses confidence in continued growth, linking the dividend increase to expected revenue growth.
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