American Express Named Among Top Value Dividend Stocks by Buffett
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Source: Yahoo Finance
- Analyst Rating Reaffirmed: BofA analyst Mihir Bhatia reiterated a Buy rating on American Express (AXP) while maintaining a $387 price target, indicating strong confidence in the company's outlook for the upcoming second quarter and fiscal 2026.
- Performance Growth Expectations: American Express reported that second-quarter billings are tracking slightly ahead of the 9% foreign exchange-adjusted growth from the first quarter, demonstrating robust spending among its premium customer base and reinforcing its market position.
- Customer Quality Advantage: The analyst highlighted that the quality of customers attracted by American Express's products surpasses that of many other consumer finance companies, which not only supports solid growth but also maintains credit quality, enhancing its competitive edge.
- Global Payment Integration: As a globally integrated payments company, American Express's diverse operations in card-issuing, merchant-acquiring, and card network services enable it to cater to a wide range of clients, further enhancing its market influence and business resilience.
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Analyst Views on AXP
Wall Street analysts forecast AXP stock price to rise
21 Analyst Rating
8 Buy
12 Hold
1 Sell
Moderate Buy
Current: 318.490
Low
280.00
Averages
379.06
High
425.00
Current: 318.490
Low
280.00
Averages
379.06
High
425.00
About AXP
American Express Company is a globally integrated payments company with card-issuing, merchant-acquiring and card network businesses. It offers products and services to a range of customers, including consumers, small businesses, mid-sized companies and large corporations around the world. Its segments include U.S. Consumer Services (USCS), Commercial Services (CS), International Card Services (ICS) and Global Merchant and Network Services (GMNS). USCS offers travel and lifestyle services as well as banking and non-card financing products. CS offers payment and expense management, banking and non-card financing products. ICS provides services to international customers, including travel and lifestyle services, and manages certain international joint ventures and its loyalty coalition business. GMNS operates a payments network that processes and settles card transactions, acquires merchants and provides multichannel marketing programs and capabilities, services and data analytics.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
American Express Named Among Top Value Dividend Stocks by Buffett
- Analyst Rating Reaffirmed: BofA analyst Mihir Bhatia reiterated a Buy rating on American Express (AXP) while maintaining a $387 price target, indicating strong confidence in the company's outlook for the upcoming second quarter and fiscal 2026.
- Performance Growth Expectations: American Express reported that second-quarter billings are tracking slightly ahead of the 9% foreign exchange-adjusted growth from the first quarter, demonstrating robust spending among its premium customer base and reinforcing its market position.
- Customer Quality Advantage: The analyst highlighted that the quality of customers attracted by American Express's products surpasses that of many other consumer finance companies, which not only supports solid growth but also maintains credit quality, enhancing its competitive edge.
- Global Payment Integration: As a globally integrated payments company, American Express's diverse operations in card-issuing, merchant-acquiring, and card network services enable it to cater to a wide range of clients, further enhancing its market influence and business resilience.
See More
Analysis of REIT and Consumer Stock Performance
- REIT Performance: Realty Income owns approximately 15,500 properties, achieving $31 billion in sourced volume in Q1 with a 9% selectivity rate, maintaining a 98.9% occupancy rate even under economic pressure, showcasing its strong resilience in the market.
- Home Depot Sales Growth: Despite high mortgage rates affecting home sales, Home Depot reported a 4.8% year-over-year sales increase in Q1 2026 and plans to open 15 new stores in the coming year, enhancing its competitive position in the market.
- American Express Revenue Growth: American Express saw an 11% year-over-year revenue increase to $18.9 billion in Q1 2026, with EPS rising 18% to $4.28, demonstrating its resilience and profitability in a high-inflation environment.
- Dividend Attractiveness: Realty Income offers a 5.3% dividend yield and has paid monthly dividends for over 55 years, while American Express provides a 1.1% yield, both serving as stable sources of passive income for investors.
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Realty Income Trust Maintains 55-Year Dividend Record
- Stable Dividend Record: Realty Income has maintained a monthly dividend for over 55 years, consistently increasing it over 115 quarters, showcasing its strong financial stability and attractiveness as a safe investment for passive income.
- Robust Financial Performance: In Q1 of fiscal 2026, Realty Income reported a 98.9% occupancy rate for its leased properties, demonstrating resilience and a business model reliant on large essential companies, which helps mitigate risks during economic downturns.
- Home Depot's Market Adaptability: Despite challenges from high mortgage rates, Home Depot achieved a 4.8% sales increase and a 0.6% rise in comparable sales in Q1 of fiscal 2026, indicating its adaptability in a tough economic environment and potential for future growth.
- American Express's Profit Growth: American Express saw an 11% year-over-year revenue increase to $18.9 billion and an 18% rise in EPS to $4.28 in Q1 of fiscal 2026, reflecting the effectiveness of its fee-based model in driving customer loyalty and recurring revenue streams.
See More
American Express CFO Expects Fee Revenue Growth
- Revenue Outlook: American Express CFO Christophe Le Caillec stated at the Morgan Stanley US Financials Conference that he expects the company's fee revenue to rebound in the remaining part of the year, contributing to a 1.9% rise in stock price.
- Strong Billing Growth: He noted that billing growth from Q2 2026 to date is slightly better than Q1 2026, which was the company's strongest quarter in three years, indicating a recovery in consumer spending confidence.
- High Demand for New Cards: The CFO emphasized that demand for new cards is very strong and aligns with the company's plans, reflecting sustained consumer interest in credit cards and enhancing the company's market position.
- Solid Credit Conditions: Despite ongoing inflation, Le Caillec expressed confidence in consumers' ability to navigate economic challenges without triggering credit events, ensuring revenue stability for the company.
See More
Delta Aims to Lead U.S. Trans-Pacific Flights
- Intensifying Market Competition: Delta's president, Peter Carter, stated that the airline aims to surpass United Airlines and become the leading U.S. carrier in trans-Pacific flights, demonstrating its ambition for market share and strategic vision.
- Financial Performance Comparison: While Delta posted a net profit exceeding $5 billion last year, significantly higher than United's $3.35 billion, its trans-Pacific revenue of $2.79 billion lags behind United's $6.89 billion, highlighting its competitive disadvantage in this market.
- New Route Launches: Delta recently initiated nonstop service from Los Angeles to Hong Kong to strengthen its position in the premium market, while United plans to launch a nonstop route from San Francisco to Sapporo, Japan, intensifying competition in the sector.
- International Strategy Focus: Carter emphasized that future growth will focus on international markets, with Delta's joint venture with Korean Air set to enhance its trans-Pacific network, reflecting its commitment to global market expansion and long-term strategy.
See More
Delta Airlines Aims to Dominate Trans-Pacific Market
- Intensifying Market Competition: Delta Airlines' new president, Peter Carter, stated that Delta aims to become stronger in the trans-Pacific market, with ambitions to surpass United Airlines as the leading U.S. carrier, highlighting its desire for increased market share.
- Financial Comparison: Delta reported a net profit exceeding $5 billion last year, compared to United's $3.35 billion, although Delta's trans-Pacific revenue was only $2.79 billion, significantly lower than United's $6.89 billion, reflecting competitive disparities in high-margin routes.
- New Route Launches: Delta recently initiated nonstop service from Los Angeles to Hong Kong, while United plans a nonstop route from San Francisco to Sapporo, Japan, as both airlines vie for premium travelers, intensifying competition in the market.
- International Expansion Strategy: Delta is looking to expand its international network through a joint venture with Korean Air, with Carter emphasizing that future growth will primarily depend on international markets, demonstrating a strong focus on the global aviation landscape.
See More
American Express Named Among Top Value Dividend Stocks by Buffett
- Analyst Rating Reaffirmed: BofA analyst Mihir Bhatia reiterated a Buy rating on American Express (AXP) while maintaining a $387 price target, indicating strong confidence in the company's outlook for the upcoming second quarter and fiscal 2026.
- Performance Growth Expectations: American Express reported that second-quarter billings are tracking slightly ahead of the 9% foreign exchange-adjusted growth from the first quarter, demonstrating robust spending among its premium customer base and reinforcing its market position.
- Customer Quality Advantage: The analyst highlighted that the quality of customers attracted by American Express's products surpasses that of many other consumer finance companies, which not only supports solid growth but also maintains credit quality, enhancing its competitive edge.
- Global Payment Integration: As a globally integrated payments company, American Express's diverse operations in card-issuing, merchant-acquiring, and card network services enable it to cater to a wide range of clients, further enhancing its market influence and business resilience.
See More
Analysis of REIT and Consumer Stock Performance
- REIT Performance: Realty Income owns approximately 15,500 properties, achieving $31 billion in sourced volume in Q1 with a 9% selectivity rate, maintaining a 98.9% occupancy rate even under economic pressure, showcasing its strong resilience in the market.
- Home Depot Sales Growth: Despite high mortgage rates affecting home sales, Home Depot reported a 4.8% year-over-year sales increase in Q1 2026 and plans to open 15 new stores in the coming year, enhancing its competitive position in the market.
- American Express Revenue Growth: American Express saw an 11% year-over-year revenue increase to $18.9 billion in Q1 2026, with EPS rising 18% to $4.28, demonstrating its resilience and profitability in a high-inflation environment.
- Dividend Attractiveness: Realty Income offers a 5.3% dividend yield and has paid monthly dividends for over 55 years, while American Express provides a 1.1% yield, both serving as stable sources of passive income for investors.
See More
Realty Income Trust Maintains 55-Year Dividend Record
- Stable Dividend Record: Realty Income has maintained a monthly dividend for over 55 years, consistently increasing it over 115 quarters, showcasing its strong financial stability and attractiveness as a safe investment for passive income.
- Robust Financial Performance: In Q1 of fiscal 2026, Realty Income reported a 98.9% occupancy rate for its leased properties, demonstrating resilience and a business model reliant on large essential companies, which helps mitigate risks during economic downturns.
- Home Depot's Market Adaptability: Despite challenges from high mortgage rates, Home Depot achieved a 4.8% sales increase and a 0.6% rise in comparable sales in Q1 of fiscal 2026, indicating its adaptability in a tough economic environment and potential for future growth.
- American Express's Profit Growth: American Express saw an 11% year-over-year revenue increase to $18.9 billion and an 18% rise in EPS to $4.28 in Q1 of fiscal 2026, reflecting the effectiveness of its fee-based model in driving customer loyalty and recurring revenue streams.
See More
American Express CFO Expects Fee Revenue Growth
- Revenue Outlook: American Express CFO Christophe Le Caillec stated at the Morgan Stanley US Financials Conference that he expects the company's fee revenue to rebound in the remaining part of the year, contributing to a 1.9% rise in stock price.
- Strong Billing Growth: He noted that billing growth from Q2 2026 to date is slightly better than Q1 2026, which was the company's strongest quarter in three years, indicating a recovery in consumer spending confidence.
- High Demand for New Cards: The CFO emphasized that demand for new cards is very strong and aligns with the company's plans, reflecting sustained consumer interest in credit cards and enhancing the company's market position.
- Solid Credit Conditions: Despite ongoing inflation, Le Caillec expressed confidence in consumers' ability to navigate economic challenges without triggering credit events, ensuring revenue stability for the company.
See More
Delta Aims to Lead U.S. Trans-Pacific Flights
- Intensifying Market Competition: Delta's president, Peter Carter, stated that the airline aims to surpass United Airlines and become the leading U.S. carrier in trans-Pacific flights, demonstrating its ambition for market share and strategic vision.
- Financial Performance Comparison: While Delta posted a net profit exceeding $5 billion last year, significantly higher than United's $3.35 billion, its trans-Pacific revenue of $2.79 billion lags behind United's $6.89 billion, highlighting its competitive disadvantage in this market.
- New Route Launches: Delta recently initiated nonstop service from Los Angeles to Hong Kong to strengthen its position in the premium market, while United plans to launch a nonstop route from San Francisco to Sapporo, Japan, intensifying competition in the sector.
- International Strategy Focus: Carter emphasized that future growth will focus on international markets, with Delta's joint venture with Korean Air set to enhance its trans-Pacific network, reflecting its commitment to global market expansion and long-term strategy.
See More
Delta Airlines Aims to Dominate Trans-Pacific Market
- Intensifying Market Competition: Delta Airlines' new president, Peter Carter, stated that Delta aims to become stronger in the trans-Pacific market, with ambitions to surpass United Airlines as the leading U.S. carrier, highlighting its desire for increased market share.
- Financial Comparison: Delta reported a net profit exceeding $5 billion last year, compared to United's $3.35 billion, although Delta's trans-Pacific revenue was only $2.79 billion, significantly lower than United's $6.89 billion, reflecting competitive disparities in high-margin routes.
- New Route Launches: Delta recently initiated nonstop service from Los Angeles to Hong Kong, while United plans a nonstop route from San Francisco to Sapporo, Japan, as both airlines vie for premium travelers, intensifying competition in the market.
- International Expansion Strategy: Delta is looking to expand its international network through a joint venture with Korean Air, with Carter emphasizing that future growth will primarily depend on international markets, demonstrating a strong focus on the global aviation landscape.
See More
