Market Sell-Off: 1 Magnificent Dividend Stock to Buy Right Now
Here’s why it’s a top pick for long-term investors
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Intro
💡 Invest in companies you believe in - W. Buffett
With the stock market experiencing turbulence in 2025, investors are seeking ways to safeguard their portfolios. Dividend growth stocks offer a compelling solution—providing steady income and increasing payouts over time.
American Express (AXP) stands out as a prime candidate. With a 175-year history, strong financials, and a growing customer base, the company continues to boost earnings while reducing share count—fueling sustainable dividend growth. Currently yielding 1.09% and recently hiking its payout by 17%, AXP is a low-risk, high-reward play for income-focused investors.
History of the Company
Founded in 1850 as an express mail business in Buffalo, New York, American Express initially specialized in freight and precious goods delivery. Its pivot to financial services began in 1882 with the introduction of money orders, a safer alternative to cash.
The company revolutionized payments in 1958 by launching its first charge card, which required full monthly repayment—unlike revolving credit cards. Over the decades, Amex became synonymous with premium service, catering to businesses and affluent consumers with perks like travel rewards and exclusive access.
Today, it operates in over 130 countries, blending its legacy of trust with modern fintech innovation while maintaining its reputation for elite customer service and financial strength.
A Dividend Powerhouse with Reliable Growth
For decades, American Express (AXP) has been a model of disciplined capital allocation, consistently returning cash to shareholders through dividends and buybacks.
While its current yield of 1.1% may seem modest, American Express has a strong track record of dividend growth, including a 17% hike in 2025—far outpacing inflation. What makes AXP stand out is its dual-engine approach: steady dividend growth (a 120% cumulative increase over 10 years) combined with an aggressive share repurchase program (reducing shares outstanding by 30% since 2015).
This strategy effectively boosts per-share payouts without straining cash flow, as Amex generates ample earnings from high-margin fees (swipe revenue, membership charges) rather than risky lending.
Even during economic downturns, its premium customer base (with lower default rates than peers) and diversified revenue streams provide stability—meaning those dividend checks keep growing. For long-term investors, AXP isn’t just a dividend stock; it’s a compounding machine with Berkshire Hathaway’s stamp of approval (owning 21% of the company).
🦅 Dividend Eagles
An updated compilation of 100+ top-performing dividend stocks with 15+ years of consecutive dividend increases, selected based on MaxDividends’ strict criteria.
Companies featured on the Dividend Eagles list have a proven track record of regular and increasing dividend payouts. This ensures you receive a reliable income, whether you're planning for retirement or seeking additional cash flow.
The Dividend Eagles list offers precisely that—a gateway to financial growth and stability.
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This is how we build our own growing passive income and long-term wealth.
Key Institutional Investors in American Express (AXP)
As of late 2024 and early 2025, the largest institutional investors in American Express Company (AXP) typically include well-known investment firms. Here are the approximate institutional holdings of American Express (AXP) shares:
Vanguard Group: 65 million shares (9% of total outstanding)
BlackRock Fund Advisors: 58 million shares (8%)
State Street Global Advisors: 36 million shares (5%)
Wellington Management Company: 22 million shares (3%)
What Makes American Express Stand Out?
American Express (NYSE: AXP)
Financial Score: 96 / 99 ⭐️⭐️⭐️⭐️⭐️
Industry: Credit Services
👉 Learn more about Financial Score
American Express (AmEx) is an American financial corporation specializing in payment solutions, credit cards and travel services. Founded in 1850 as a freight transportation company, AmEx has transformed into one of the world leaders in the financial sector, ranking 4th in transaction volume among payment systems after UnionPay, Visa and Mastercard.
American Express - Quick MaxDividends Team Overview
🟢 According to the latest reports, the company is currently showing financial profit.
🟢 Business sales are growing steadily, which indicates the stable development
of the company
🟢 The growth in operating profit over recent years confirms the strategic success of the company and its ability to increase its presence in the market.
🟢 The dynamics of earnings per share are positive, the company shows good pace and stability in terms of profitability
🟢 The company demonstrates a high degree of sustainability and provides stable income.Financial Statement
If you want to stay on top of your portfolio's health, don't forget to check in on the financials of the companies you've invested in. The better shape they’re in, the better your results will be. Keep an eye on their quarterly and annual reports to see how they're performing.
Here is a quick dive into American Express over last years
The strongest and most stable companies tend to have a Financial Score of 80+, with the very best ones hitting 90+. If you see that score start to dip below 80, that’s your cue to consider jumping ship before things get worse.
👉 Learn More about Financial Score
Our Paid Members get access to a curated watchlist of 19,000 companies worldwide, all scored by our team on a regular basis. Companies like American Express are on that list, too.
Future Growth Prospects for American Express.
American Express is poised for robust growth in 2025, projecting revenue increases between 8% and 10% and earnings per share (EPS) ranging from $15.00 to $15.50. These projections align with or slightly exceed analyst expectations, reflecting the company's confidence in sustained consumer spending and strategic initiatives.
A significant driver of this growth is the rising spending power of Millennials and Gen Z, who now comprise 42% of American Express's cardholder base. These younger demographics are increasingly engaging with premium products, accounting for approximately 75% of new U.S. Platinum and Gold Card acquisitions. Their spending habits, particularly in travel and entertainment, have contributed to a 16% increase in transaction volumes.
To capitalize on these trends, American Express is enhancing its digital offerings and expanding its merchant network, aiming to provide personalized experiences that resonate with younger consumers. Additionally, the company is addressing competition from fintech firms and Buy Now, Pay Later (BNPL) services by introducing flexible payment options like the "Plan It" feature, allowing cardholders to split large purchases into fixed monthly payments.
With a strong brand presence, strategic focus on emerging consumer segments, and innovative financial solutions, American Express is well-positioned to navigate the evolving financial landscape and achieve its growth objectives in 2025.
American Express Company (AXP) Financial Performance
AXP's financial health in 2024 reflects solid execution and resilience. Total revenues are estimated to have grown by approximately 10% to 12% year-over-year, driven by consistent growth in cardmember spending (billed business up around 8%) and strong uptake in fee-based products.
Net income growth is projected to be robust, potentially exceeding 15%, supported by revenue gains and effective expense management. The company continues to deliver strong returns, with Return on Average Equity (ROE) remaining well above 30%, a testament to its profitable business model.
For a deeper analysis, consider Breaking Down American Express Company (AXP) Financial Health: Key Insights for Investors. These metrics underscore the effectiveness of AXP's strategy focused on premium customers and integrated services.
With MaxDividends, it's easier than ever to access top dividend companies, track your results, and explore new dividend ideas.
The MaxDividends Top Stocks List features ~100 of the most reliable dividend companies in the U.S. market, each with 15+ years of consecutive dividend increases. These stocks are carefully selected based on MaxDividends' strict criteria for consistency and reliability.
Dividend Kings represent the elite tier of dividend growth stocks. With 50+ years of consecutive dividend increases, these companies offer unparalleled income stability, making them a top choice for investors seeking long-term reliability in an unpredictable market.
With 25+ years of consecutive dividend increases, Dividend Aristocrats are among the strongest dividend growth stocks. These companies have a proven track record of not only maintaining but consistently increasing their dividends, often outperforming the broader market over time.
Why Invest in American Express Company?
Investing in American Express Company (NYSE: AXP) provides exposure to a financially solid and brand-strong company with consistent profitability. In 2024, Amex reported record annual revenue of $60.5 billion, up 9% year-over-year, and net income of $9.1 billion.
The return on equity (ROE) remained high at 30%, reflecting efficient capital use. The company continues to attract high-value customers: 75% of new Platinum and Gold cardholders in the U.S. are Millennials and Gen Z—segments that increased their spending by 18% in travel and dining categories alone.
American Express also maintains a competitive dividend yield (around 1.3%) with a consistent history of dividend increases and strong share buybacks ($5.5 billion in repurchases in 2024). With its integrated payments model, growing digital engagement, and a 2025 EPS outlook of $15.00–$15.50, Amex presents a solid long-term investment for those seeking exposure to the premium end of consumer finance.
Interesting Fact
One of the most intriguing facts about American Express is its pioneering role in introducing the first plastic credit card. In 1959, just a year after launching its initial paper charge card, American Express revolutionized the payment industry by issuing the first plastic card, setting a new standard for durability and convenience in financial transactions.
This innovation not only enhanced the user experience but also paved the way for the widespread adoption of credit cards globally. The move to plastic cards was a significant step in the evolution of modern payment systems, reflecting American Express's commitment to innovation and customer service.
Competitors
1. Mastercard Inc (NYSE: MA)
Financial Score: 99 / 99
Industry: Credit Services
Mastercard Inc. (NYSE: MA) is one of the world's largest payment companies, providing electronic payment solutions in more than 210 countries. The company does not issue cards or extend credit - its primary role is to provide security, speed, and technology infrastructure to process payments between banks, stores, and customers. In 2024, Mastercard has revenue of about $25 billion and net income of $11 billion.
2. Visa Inc. Class A (NYSE: V)
Financial Score: 99 / 99
Industry: Credit Services
Visa Inc. (NYSE: V) is a global leader in digital payments, providing secure and fast transaction processing in more than 200 countries and territories. The company does not issue cards or extend credit, but rather provides the infrastructure and technology to process payments between banks, merchants and consumers.
Final Thoughts: Should You Buy American Express?
American Express (AXP) is a compelling investment for those seeking a blend of stability, growth, and reliable dividends. Its premium-branded payment network, loyal customer base, and diversified revenue streams (transaction fees, membership charges, and lending) make it resilient in economic downturns. While its dividend yield (~1.1%) is modest, the company’s consistent payout growth and aggressive share buybacks enhance long-term shareholder returns.
However, investors should consider:
✅ Strengths: Strong brand, high-spending clientele, low default rates, and expanding digital services.
⚠️ Risks: Exposure to economic cycles, competition from Visa/Mastercard, and reliance on travel/spending trends.
Verdict: If you value a proven blue-chip stock with steady dividend growth and upside from global expansion, AXP is a strong buy-and-hold candidate.
For higher-yield alternatives, compare with financial peers like JPMorgan or Discover—but for low-risk income growth, AmEx stands out.
Current Market Value
Undervalued \ Overvalued \ Fairly Valued
Compare the P/E ratios of competitor companies to assess whether the stock you're considering is overvalued. We calculate the average P/E among competitors as a benchmark.
If a company's current P/E is 20% or more below the competitor average, it is considered undervalued.
If it is 20% or more above, it is considered overvalued.
The P/E ratio is calculated by dividing the market value per share by earnings per share (EPS).
Fairy valued
Analysts Consensus
As of May, analyst sentiment toward the stock remains broadly positive. Out of 30 analysts, 7 rate it as a “Strong Buy,” 7 as a “Buy,” and 18 as a “Hold,” with no “Underperform” or “Sell” ratings. This indicates steady confidence in the company’s fundamentals. The average 12-month price target is $289.75, representing moderate upside potential from the current trading price of $276.24.
Price targets range from a low of $230.00 to a high of $371.00, suggesting analysts see limited downside risk and a possibility for strong upside if bullish catalysts materialize.
To your wealth, MaxDividends Team
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