(MENAFN- ProactiveInvestors) American Express ( the biggest U.S. credit-card issuer by customer purchases announced a 12 percent dividend increase and a new share-buyback program.
The New York-based company said in a statement late yesterday that it is raising its quarterly payout to $0.29 from $0.26.
It said in March that it planned the 12 percent increase. The move was included in the company’s capital plan submitted to regulators.
The dividend is payable on August 10 to shareholders of record on July 2.
American Express authorized the repurchase of up to 150 million shares replacing a previous buyback program with 45 million shares remaining.
Last month American Express said first-quarter net income rose 6.5 percent as cardholders increased spending and borrowing. The company reiterated its forecast that 2015 earnings will be “flat to modestly down year over year.”
AmEX was dealt several setbacks during the quarter including the loss of a court case and a lucrative 16-year partnership with Wholesale (NASDAQ:COST) the largest U.S. warehouse-club chain.
American Express is working to keep business from card holders and the company has also renewed branded-card agreements with Starwood Hotels and .
Struggling in recent months to keep up with its longtime revenue-growth target of 8 percent the card company had instead prioritized cost cutting including announcing in January the elimination of 4000 jobs throughout the year.
Shares rose 1 percent to $79.86 at 2:43 p.m. in New York paring this year’s slump to 14 percent.
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