American Express plans to buy back $5B in shares

[March 15, 2012]  NEW YORK (AP) -- American Express Co. plans to buy back up to $5 billion of its own stock and boost its dividend, after the credit card company passed the Federal Reserve's stress test.

American Express plans to boost its quarterly dividend to 20 cents per share from 18 cents. The New York-based company said Tuesday the Fed had no objections to the buyback or the dividend increase.

American Express joins a number of other financial institutions that said they will give more money back to shareholders after passing the stress tests.

Wells Fargo & Co., U.S. Bancorp, BB&T and JPMorgan Chase all say they will boost dividends.

[Associated Press]

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