12 Best Financial Sector Dividend Stocks To Buy Right Now

9. American Express Company (NYSE:AXP)

Number of Hedge Fund Holders: 62

American Express Company (NYSE:AXP) ranks ninth on our list of the best dividend stocks from the financial services sector. The American financial services company offers some of the most competitive credit cards available, largely due to its highly appealing Membership Rewards program. Cardholders can accumulate perks and bonuses with ease, even without high spending. In addition, the company operates as both the issuer of its cards and the processor of its transactions, giving it access to extensive customer data. This allows for personalized reward offerings, making its cards highly engaging. As a result, customers often remain loyal, using their American Express cards for years, if not decades.

In the fourth quarter of 2024, American Express Company (NYSE:AXP) generated over $17 billion in revenue, marking a 9% increase from the same period the previous year. Net income exceeded $2.1 billion, reflecting 12% growth year over year. The company set new records in annual Card Member spending, net card fee revenues, and new card acquisitions, issuing 13 million new cards throughout the year. Moreover, it expanded its global presence by adding millions of new merchant locations. By year-end, growth accelerated, with billings rising 8% in the fourth quarter, driven by higher consumer and commercial spending during the holiday season.

On January 24, American Express Company (NYSE:AXP) declared a 17.1% growth in its quarterly dividend to $0.82 per share. This was the company’s sixth dividend increase in the past three years. As of February 16, the stock has a dividend yield of 0.90%.