Is the American Express Company's Dividend Safe?
Over the past six years, not only has the American Express Company (NYSE: AXP) hiked its dividend, but it has done so by fairly generous amounts. In 2016, American Express raised its dividend by a little more than 10%; in 2015, the company raised it by 11.5%. These healthy increases in dividend payouts have begun to put American Express on the radar of dividend growth investors, even with a yield that is still below the market average at just 1.5%.
Unfortunately for investors, American Express has faced its share of struggles the past couple of years. Since the beginning of 2015, the company's stock price has actually declined by 8%, while the S&P 500 has gained 18%. American Express's share price stagnation, coupled with its generous dividend hikes, has pushed the yield higher, making the stock more attractive to dividend growth investors. But with its recent business struggles, is the company's payout to shareholders safe? Let's take a closer look at what's ailing the company, what management is doing to right the ship, and how safe American Express's dividend really is.
Source: Fool.com
American Express Co. Stock
Currently there is a rather positive sentiment for American Express Co. with 24 Buy predictions and 7 Sell predictions.
With a target price of 222 € there is a slightly positive potential of 2.26% for American Express Co. compared to the current price of 217.1 €.
