American Express hikes dividends 16% as Fluence Energy grapples with 51% stock plunge
American Express hikes dividends 16% as Fluence Energy grapples with 51% stock plunge
American Express hikes dividends 16% as Fluence Energy grapples with 51% stock plunge
American Express has raised its quarterly dividend by 16% to $0.95 per share, marking another step in its long-term growth strategy. The financial giant also set ambitious targets for 2026, aiming to boost revenue by 9% to 10% and earnings per share by up to 16.4%. Yet, despite these moves, its stock has struggled this year amid broader market concerns.
Meanwhile, Fluence Energy faces its own challenges. The battery storage specialist reported a record $5.5 billion backlog, but its shares have plunged 51% since February. Both companies now navigate contrasting financial landscapes as economic uncertainty lingers.
American Express started 2024 on strong footing, with its stock climbing 20.48% by mid-March—double the S&P 500's typical gains in that period. The company's disciplined lending practices and low charge-off rates reinforced its reputation for credit management. A robust balance sheet and steady free cash flow also allowed it to fund share buybacks and dividend growth.
In March 2026, the firm announced a 16% dividend hike, lifting the payout to $0.95 per share and a forward yield of 1.3%. But this year, its shares have underperformed both the S&P 500 and the financial sector. Investors appear cautious about high valuations and signs of an economic slowdown.
Fluence Energy, on the other hand, reported a record $5.5 billion project backlog, enough to cover its full-year 2026 revenue guidance. The company is also in talks for 36 GWh of new data centre storage deals, though these remain outside its official pipeline. Data centre operators, facing years-long grid connection delays, increasingly turn to Fluence's on-site battery solutions.
Yet, Fluence's stock has tumbled 51% from its February high. First-quarter gross margins fell short after unexpected scope changes in two international projects. Management insists the added costs will be recovered, but the drop has weighed on investor confidence.
American Express moves forward with higher dividends and growth targets, backed by a resilient business model. Its stock performance, however, reflects broader market caution. Fluence Energy, despite a bulging order book, must now reassure investors after its sharp share decline and margin setback. Both companies will need to address these pressures as 2026 progresses.