Two Major Banks Announce Significant Dividend Increases This Quarter

In today’s market environment, substantial dividend increases are increasingly rare between reporting cycles, when most companies prioritize operational execution over shareholder payouts. Yet the U.S. equity market’s breadth continues to surface compelling opportunities. Two prominent financial institutions have recently made noteworthy announcements that should capture the attention of income-focused investors: JPMorgan Chase and American Express. Both companies revealed dividend increases that underscore strong business momentum and confidence in future earnings trajectories.

JPMorgan Chase Elevates Quarterly Distribution by 12%

As the largest U.S. financial institution across multiple metrics—including total assets, market capitalization, and dividend disbursements—JPMorgan Chase operates at an unmatched scale. The banking giant recently unveiled a 12% boost to its quarterly dividend, raising the per-share payment to $1.40. This substantial increase reflects the lender’s commanding position across banking and financial services segments and its integral role in facilitating U.S. economic expansion.

The bank’s 2024 performance validates this confidence. Total revenue climbed 12% year-over-year to $177.6 billion, while net income expanded 18% to reach nearly $58.5 billion—a new company record. Growth materialized across all three major business divisions, with its commercial and investment banking arm particularly standout, posting a 23% surge in net income to approximately $25 billion. This performance was buoyed by robust capital markets activity throughout the year.

Looking ahead, potential trade policy shifts could present headwinds for financial institutions and the borrowers they serve. However, JPMorgan Chase’s fortress-like balance sheet and diversified revenue streams position it well to navigate uncertain terrain. The new quarterly payout will be distributed on April 30 to shareholders of record as of April 4, yielding approximately 2.3% at current price levels.

American Express Surpasses with a 17% Dividend Elevation

American Express went further, announcing a 17% dividend increase—notably larger than JPMorgan Chase’s 12% boost. The company elevated its quarterly distribution to $0.82 per share, a declaration that arrived with strong fourth-quarter results. The credit card issuer delivered record-setting financial performance in 2024, with revenue advancing 9% to just under $66 billion and net income jumping 21% to surpass $10.1 billion.

A key advantage that distinguishes American Express is its closed-loop business model. Unlike transaction processors such as Visa and Mastercard—which operate the payment rails but don’t issue cards—American Express functions as both processor and card issuer. This integrated structure typically translates to superior margin profiles and more direct relationships with cardholders. Beyond benefiting from elevated consumer spending, the company has actively expanded its merchant ecosystem and cardholder base; it added a record 13 million new cardholders during 2024.

The company projects 8% to 10% revenue growth in 2025 compared with 2024’s exceptional performance, with earnings per share (compliant with GAAP accounting standards) expected to rise 7% to 11%. This forward guidance reflects management’s conviction despite uncertain macroeconomic crosscurrents. American Express will distribute its elevated dividend on May 9 to stockholders of record as of April 4, representing a 1.2% yield at prevailing share prices.

What These Dividend Increases Signal for Income Investors

The divergence in dividend increases between these two financial powerhouses—12% versus 17%—reflects their distinct business exposures and capital allocation priorities. JPMorgan Chase’s increase mirrors its dominance in traditional banking and capital markets services, while American Express’s more aggressive boost showcases the strength of consumer credit demand and its profitable card-issuing model. Collectively, these dividend increases this quarter exemplify how well-capitalized financial institutions are translating strong operational performance into tangible shareholder returns, even amid macroeconomic uncertainty.