American Express Dividend Rises 16% as BofA Cuts Target to $382
Robinhood Banking reached $1 billion in deposits from 65 000 customers to support its invite-only $695-per-year Platinum Card, creating competition for American Express. Bank of America lowered its price target to $382 from $420 while maintaining a Buy rating and AXP’s board approved a 16% increase to a $0.95 quarterly dividend.
1. Price Target Reduction
Bank of America lowered its price target on American Express to $382 from $420 as it factors in a more uncertain consumer finance outlook and reduced market multiples, while maintaining its Buy rating on AXP shares.
2. Dividend Increase
American Express’s board approved a 16% boost to its quarterly dividend, raising the payout to $0.95 per share, marking the company’s continued focus on shareholder returns backed by stable cash flows.
3. Emerging Competition
Robinhood Banking reached $1 billion in deposits from 65 000 customers just four months after launch to underpin its $695-per-year Platinum Card, signaling a new high-end credit product that could intensify competition in premium card segments.