American Express: Buy, Sell, or Hold?

As an investor, you might be wondering whether American Express (AXP) is a stock worth buying, selling, or holding onto. With a market cap of $206.61 billion and a stock price of $293.30, AXP has seen a 57.04% increase in the past 52 weeks. But is this growth sustainable, and should you consider adding AXP to your portfolio? Let's dive into the data and analyze the company's recent performance, dividend history, and analyst sentiment to help you make an informed decision.



Recent Performance

American Express has reported strong revenue growth in recent quarters, with Q3'24 revenue growing by 8% year-over-year. This growth was driven by increased card member spending, higher net interest income, and international market expansion, particularly among Millennials and Gen Z consumers (Seeking Alpha, 17 days ago). The company's premium customer base has also contributed to its stable revenue and low delinquency rates, even during economic uncertainty (Seeking Alpha, 11 days ago).



Dividend History and Payout Ratio

American Express has a strong dividend history, with an annual dividend of $2.80 as of January 2025, which amounts to a dividend yield of 0.95%. The company has increased its dividend by 16.67% year-over-year, and it has a payout ratio of 20.63%. This indicates that American Express is distributing a significant portion of its earnings to shareholders while maintaining a healthy balance between dividends and reinvestment in the company.



Analyst Sentiment

According to 23 analysts, the average rating for AXP stock is "Hold." The 12-month stock price forecast is $271.33, which is a decrease of -7.49% from the latest price. However, some analysts have a more bullish outlook on the stock. Brian Foran of Truist Securities initiated coverage on AXP with a "Strong Buy" rating and a price target of $350, while Sanjay Sakhrani of Keefe, Bruyette & Woods also has a "Buy" rating with a price target of $350.



Buy, Sell, or Hold?

Based on American Express's strong recent performance, dividend history, and analyst sentiment, the company appears to be a solid "Hold" candidate. While some analysts have a more bullish outlook, the average rating is "Hold," and the 12-month stock price forecast is a decrease of -7.49% from the latest price. However, if you're looking for a stable, dividend-paying stock with a strong track record, American Express is worth considering for your portfolio.

In conclusion, American Express's recent performance, dividend history, and analyst sentiment suggest that the company is a solid "Hold" candidate. While some analysts have a more bullish outlook, the average rating is "Hold," and the 12-month stock price forecast is a decrease of -7.49% from the latest price. If you're looking for a stable, dividend-paying stock with a strong track record, American Express is worth considering for your portfolio.