11 Best Income Stocks to Buy According to Hedge Funds

3. American Express Company (NYSE:AXP)

Number of Hedge Fund Holders: 75

American Express Company (NYSE:AXP) sets itself apart from other credit card companies by focusing on a wealthier customer base, offering premium gold and platinum cards, and serving a large number of corporate clients. Customers often benefit from generous travel rewards, making the brand particularly appealing to frequent travelers.

Unlike Visa or Mastercard, American Express Company (NYSE:AXP) not only issues cards but also runs its own payment network, allowing it to lend directly and earn interest income. Its dividend track record adds to its appeal, with a modest 1.1% yield supported by a low 21% payout ratio. The company has grown its dividend at an annual rate of 12% over the past five years and maintains a strong balance sheet, leaving plenty of room for future increases and long-term compounding.

American Express Company (NYSE:AXP) currently offers a quarterly dividend of $0.82 per share and has a dividend yield of 1.1%, as of July 31. It is among the best dividend stocks to invest in.