10 Best Bank Dividend Stocks To Buy Right Now

7. American Express Company (NYSE:AXP)

Number of Hedge Fund Holders: 62

American Express Company (NYSE:AXP) is an American bank holding and financial services company that mainly specializes in payment cards. The stock is grabbing investors’ attention, delivering a nearly 46% return in the past 12 months. In October 2024, the company purchased UBS’s 50% share in Swisscard, gaining full ownership of the credit card provider. This move helped American Express solidify its presence in the Swiss market and incorporate Credit Suisse customers into its existing credit card services. The company’s strong competitive advantages have created a robust model for inflation protection, which has become increasingly apparent as the company continues to expand.

In the fourth quarter of 2024, American Express Company (NYSE:AXP) reported revenues exceeding $17 billion, reflecting a 9% year-over-year increase. Its net income for the quarter surpassed $2.1 billion, representing a 12% growth compared to the previous year. American Express achieved record-breaking figures in annual Card Member spending, net card fee revenues, and new card acquisitions, adding 13 million new cards throughout the year. The company also expanded its global reach, adding millions of new merchant locations. By the end of the year, growth gained momentum, with billings rising 8% in the fourth quarter, driven by increased consumer and commercial spending during the holiday season.

American Express Company (NYSE:AXP) is a solid dividend payer, having raised its payouts six times in the past three years. Moreover, in the past five years, the company has raised its dividends at an annual average rate of over 11%. Currently, it pays a quarterly dividend of $0.82 per share for a dividend yield of 0.91%, as of February 13.