American Express Company Is Quietly Becoming a Dividend Pick

American Express Company (NYSE:AXP) is one of the Best Stocks to Buy for Dividends.

A close-up view of a payment terminal, capturing the sophistication of a payment network.

American Express Company (NYSE:AXP) is a leading financial company that earns revenue by processing payments and issuing its own credit cards. It collects fees from both transactions and cardholders. As of June 25, the stock offers a dividend yield of 1.06%, which is below the market average, a sign that the stock has seen a strong price increase. Over the past year, it has delivered nearly a 34% return to shareholders, and the low yield suggests the stock is relatively expensive.

Still, American Express Company (NYSE:AXP)’s dividend outlook remains strong. While it doesn’t raise its dividend every year, Amex has consistently either increased or maintained its payouts for decades, regardless of market conditions. In January, it announced a 17% boost to its quarterly dividend, the largest in over ten years. The company currently offers a quarterly dividend of $0.82 per share.

While some banks have reduced or halted dividends during downturns, American Express Company (NYSE:AXP) has continued rewarding shareholders. This resilience reflects its conservative lending practices and focus on higher-income customers, who are less likely to default in tough economic times.

While we acknowledge the potential of AXP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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