From Nasdaq: 2025-04-28 04:20:00

American Express (NYSE: AXP) celebrates its 175th anniversary with a reputation for reliability and innovation, attracting a resilient customer base that spends on travel and entertainment. In Q1 2025, revenue increased by 9%, and earnings per share rose to $3.64. The company focuses on affluent customers for best-in-class risk management and default rates. With a growing customer base of younger, affluent members, American Express is poised for future growth.

American Express benefits from a closed-loop model that thrives in different interest rate environments. The company’s online bank provides additional revenue streams and opportunities for cross-selling to its affluent members. Despite servicing a smaller spending base, American Express generates higher revenue than competitors like Visa and Mastercard.

Investors seeking stability and passive income may find American Express appealing with its reliable and growing dividend. While the dividend yield is modest at 1.1%, the stock has outperformed the S&P 500, offering the potential for growth in addition to dividends. Consider the 10 best stocks to buy now, as recommended by the Motley Fool Stock Advisor analyst team, for potential high returns in the future.



Read more at Nasdaq: 3 Reasons to Buy American Express Stock Right Now