American Express confirmed it's raising its dividend for the first time since November 2007 on Monday, after having easily passed the Fed's stress tests a few weeks ago.  The company also unveiled its new capital plan which includes share re purchases of up to $4 billion this year.

The large credit services company announced a 2 cent, or 11%, dividend hike and will now pay 20 cents per share.  This is American Express' first dividend hike since late 2007, when it raised its disbursement from 15 to 18 cents per share.  Payments will be made on May 10 for shareholders as of April 5.

A few weeks ago, American Express passed the Fed's stress tests with flying colors.  Amex passed the test, which among other things assumed a dramatic 50% drop in equity markets and 21% decline in home prices, with a 10.8% capital ratio, meaning it is well capitalized to weather an economic storm.  Amex had already announced its capital plans, which it confirmed on Monday.

The company also confirmed it would be repurchasing up to 150 million shares, replacing a prior 200 million share buyback program that had about 38 million shares remaining.  Accounting for about 13% of shares outstanding, Amex's new repurchases could total around $4 billion this year and an additional $1 billion in the first quarter of 2013, according to the press release.

Other companies like JPMorgan Chase and Wells Fargo also announced dividend hikes in the aftermath of the Fed's stress tests, while Citi saw its plans rejected by the Fed.

Shares in American Express continued their upward movement on Monday after the news hit the wire.  The stock closed the day up 2.5% or $1.41 to $58.66.