Dobermans of the Dow: 10 Stocks to Consider

3. American Express Company (NYSE:AXP)

Free Cash Flow Yield: 0.06

Number of Hedge Fund Holders: 71

American Express Company (NYSE:AXP) is an American financial services company that mainly specializes in payment cards. The company is known for offering some of the most attractive credit cards on the market, thanks in large part to its highly rewarding Membership Rewards program. Cardholders can easily earn perks and bonuses without requiring high spending. In addition, it acts as both the issuer of its cards and the processor of transactions, granting it access to valuable customer data. This enables tailored reward offerings, making its cards particularly engaging. As a result, many customers remain loyal, often using their American Express cards for years or even decades.

In the fourth quarter of 2024, American Express Company (NYSE:AXP) reported revenue exceeding $17 billion, reflecting a 9% increase from the prior year. Net income surpassed $2.1 billion, marking 12% year-over-year growth. The company achieved record highs in annual Card Member spending, net card fee revenues, and new card acquisitions, issuing 13 million new cards throughout the year. It also expanded its global reach by adding millions of new merchant locations. By the end of the year, growth momentum continued, with fourth-quarter billings rising 8%, fueled by increased consumer and commercial spending during the holiday season.

On January 24, American Express Company (NYSE:AXP) announced a 17.1% increase in its quarterly dividend, raising it to $0.82 per share. This marked the company’s sixth dividend hike in the past three years. The stock supports a dividend yield of 1.26%, as of March 10.