In this article, we will take a look at the 5 best bank stocks for dividends. For a detailed analysis of these companies, go directly to the 10 Best Banks Stocks for Dividends.
5. American Express Company (NYSE:AXP)
Number of Hedge Fund Holders: 60
Total Value of Hedge Fund Holdings: $21.8 Billion
Dividend Yield as of May 7: 1.10%
Ranking 5th in our list of the 10 best bank stocks for dividends is American Express Company (NYSE:AXP). The New York-based multinational financial services corporation has over 114 million cardholders. American Express Company (NYSE:AXP) has a market cap of $127.7 billion and total revenue in the full year 2020 of $36.1 billion. In April, Deutsche Bank maintained its Buy rating on American Express Company and raised the price target to $158.
There were 60 hedge funds that reported owning stakes in American Express Company (NYSE:AXP) at the end of the fourth quarter, up from 48 funds a quarter earlier. The total value of these stakes at the end of Q4 is $21.8 billion.
Bretton Fund mentioned that American Express Company (NYSE:AXP) has a reasonably diverse client base overall in its Q4 2020 investor letter:
“American Express has elements of both a bank (it extends credit card loans) and a payments processor (most of its revenue is fees from cardholders and merchants) and was hit pretty hard by Covid-19, though we expect most of the impact will be transitory. It has a relatively diversified customer base overall, but a meaningful portion of its card activity is from business travel, which…there wasn’t a lot of last year. Similar to the banks, American Express recognized loan losses in anticipation of large defaults, though it’s not clear all of that will come to pass. Its stock returned -1.1%, while earnings per share were down 53%.”