Dividend increases aren't exactly coming thick and fast these days. That's what happens in the periods between earnings seasons, when most companies concentrate on performance rather than payouts.
But in an equities market as wide and deep as the U.S.'s, there is always bound to be an outlier or two. Here then, is a look at two blue-chip companies that recently raised their dividends -- JPMorgan Chase (JPM +1.38%) and American Express (AXP +2.41%).
1. JPMorgan Chase
Nearly everything JPMorgan Chase does is on a large scale. It's by far the biggest U.S. bank by several financial and stock market metrics. These include revenue, market cap, and -- important for our purposes -- total dividend payout.
True to its impressive scale, the lender recently declared a double-digit percentage dividend increase, specifically by 12% to a new quarterly disbursement of $1.40 per share.
With is vast operations covering major segments in the banking and financial services fields, JPMorgan Chase is both a beneficiary and a facilitator of the long-term growth of the U.S. economy.
Its growth rates, substantial for such a large and sprawling business, reflect this. Net revenue in 2024 climbed 12% from the previous year to $177.6 billion. Net income swelled by 18%, meanwhile, to hit a new all-time record of almost $58.5 billion.
NYSE: JPM
Key Data Points
This was powered by growth in both metrics in all three of the bank's business units; a particular standout was its commercial and investment bank division. Frothy financial markets spurred substantial improvements during the year, notably a 23% jump in the unit's net income to almost $25 billion.
The economy might take a few blows during the coming months depending on how the planned tariffs from the Trump administration play out. If they result in a protracted trade war, many types of business in this country will suffer, including the banks that lend the economy money. Still, if any lender can hang on and weather a potential storm, it's JPMorgan Chase.
The bank's new dividend is to be dispensed on April 30 to investors of record as of April 4. At its most recent closing price, the dividend yield works out to 2.3%.
2. American Express
JPMorgan Chase's 12% dividend increase is nice, but AmEx's 17% hike is even better. The sturdy credit card company entered March like a lion with that declaration; the generous raise makes the new quarterly payout $0.82 per share.
Like the big bank, AmEx had a prosperous, record-setting 2024, with all-time highs for net revenue and net income. The former was 9% higher than the 2023 figure at just under $66 billion. The bottom line zoomed 21%, meanwhile, to more than $10.1 billion.
The company almost always manages to post wide margins. One major reason for this is that it's a so-called closed loop card operator. In contrast to Visa and Mastercard, which essentially act purely as the transaction processors of their branded plastic, AmEx is both the transaction processor and the issuer of the credit cards.
NYSE: AXP
Key Data Points
A humming economy is good for AmEx too, of course, since higher spending by its cardholders means more revenue for the company. What's encouraging is that the company obviously isn't relying just on this. Efforts to expand its merchant network and add new members have borne fruit; in fact, 13 million new card were added during the year, setting another company record.
AmEx doesn't seem spooked by the gathering trade conflicts. It's projecting revenue growth of 8% to 10% in 2025 over the rousing 2024 tally. The company forecasts earnings per share (EPS), compliant with generally accepted accounting principles (GAAP), to rise by 7% to 11% on the back of that.
AmEx will hand out its newly raised dividend on May 9 to stockholders of record as of April 4. It would yield 1.2% at the company's current share price.
