10 Best GARP Stocks That Pay Dividends

5. American Express Company (NYSE:AXP)

Number of Hedge Fund Holders: 62

American Express Company (NYSE:AXP) is an American bank holding company that offers a wide range of related services to its consumers. Analysts believe this is a well-managed business that is performing strongly at present. A key factor in its success is its emphasis on higher-income customers, who tend to spend more. This strategy also provides an advantage during economic downturns, as wealthier consumers are typically more resilient during recessions. In the past 12 months, the stock has surged by over 47%, which makes it one of the best GARP stocks.

In October 2024, American Express Company (NYSE:AXP) acquired UBS’s 50% stake in Swisscard, securing full ownership of the credit card provider. This acquisition strengthened American Express’s position in the Swiss market while integrating Credit Suisse customers into its credit card services. With its strong competitive advantages, the company has built a resilient model that offers protection against inflation, a factor that has become even more evident as it continues to grow.

In the fourth quarter of 2024, American Express Company (NYSE:AXP) reported revenue of over $17 billion, marking a 9% increase from the same period the previous year. The company’s net income exceeded $2.1 billion, reflecting a 12% year-over-year rise. It has established itself as a reliable dividend payer, having increased its payouts six times in the last three years. Moreover, over the past five years, the company has grown its dividends at an average annual rate of more than 11%. It currently offers a quarterly dividend of $0.82 per share and has a dividend yield of 0.90%, as of February 14.