15 Best Dividend Stocks to Buy for Long-Term Passive Income

5. American Express Company (NYSE:AXP)

Number of Hedge Fund Holders: 71

American Express Company (NYSE:AXP) is an American financial services company that specializes in payment cards. Unlike many of its rivals that act mainly as intermediaries between cardholders and banks, American Express operates on a closed-loop system, handling both card issuance and payment processing. This setup gives AmEx full oversight of each transaction, allowing it to build direct connections with its high-income customers. These relationships not only help the company earn higher transaction fees but also allow it to deliver customized services to its premium clientele, strengthening customer loyalty and boosting revenue in the process. The stock has surged by nearly 12% in the past 12 months.

In the first quarter of 2025, American Express Company (NYSE:AXP) reported revenue of $17 billion, which showed a 7.38% growth from the same period last year. The revenue also surpassed analysts’ estimates by $39 million. The company’s net income of $2.6 billion also showed a 6% growth on a YoY basis. Overall spending by Card Members continued to increase at a healthy rate, rising 6%, or 7% when excluding the effect of the extra day from the leap year.

American Express Company (NYSE:AXP) reported continued strength across several key areas, including Card Member spending, customer retention, demand for premium products, and credit performance—trends that remained consistent with, and in many cases outperformed, those observed in 2024.

Citing stable spending patterns and solid credit trends, along with the current economic outlook, management reaffirmed its full-year guidance. The company continues to project revenue growth of 8% to 10% and earnings per share between $15.00 and $15.50, in line with the expectations shared in January, though still dependent on broader macroeconomic conditions.

American Express Company (NYSE:AXP) currently offers a quarterly dividend of $0.82 per share and has a dividend yield of 1.23%, as of April 24. In January, the company declared a 17% hike in its quarterly dividend, which was its most significant increase in over a decade.