Key Points
American Express' long history reflects a lot of business acumen.
It's a dividend-paying stock with a strong record of increases.
Even Warren Buffett likes the stock, with his company owning 22% of it.
Many of us are always on the lookout for promising growth stocks. I have one to suggest to you, and it's very possibly one you never thought of as a growth stock. It's not unfamiliar to you, also, and may even be present in your wallet. I'm speaking of American Express(NYSE: AXP).
Here's some proof of its growth stock status:
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American Express | Average annual gain |
|---|---|
1 year | 37.40% |
3 years | 27.39% |
5 years | 18.41% |
10 years | 18.23% |
15 years | 14.41% |
Source: Morningstar.com, as of April 21, 2026.
Image source: Getty Images.
Impressive, right? You might not be surprised to learn that it's long been a top holding of Warren Buffett's company, BerkshireHathaway. Most recently, it was the second-largest position, valued at $56 billion and representing 22% of American Express' total value.
Why American Express?
One reason I like the company is its history -- it was founded well before the Civil War, in 1850. That may not seem very relevant for investors, but it does reflect a company that's been able to change with the times and survive -- for 176 years!
Of course, there's more. It's a dividend-paying stock, recently yielding 1.15%. That may not seem like a lot, but it's roughly on par with the S&P 500's dividend yield, and growing much faster. Over the past five years, that payout has risen by an average of 17% per year. On top of that, the company has also been rewarding shareholders by buying back shares. Add that activity to the dividend yield, and you get a total shareholder yield of 3.58%.
American Express is performing well, posting a 10% year-over-year revenue gain for 2025 and a double-digit earnings-per-share (EPS) gain, as well. Importantly, in the fourth quarter, cardholders spent 9% more than they did the year before. The company just released first-quarter results, too, with revenue and earnings rising by 11% and 15%, respectively, year over year. These results beat expectations, but the stock pulled back a bit on management not raising near-term expectations for growth.
Management, by keeping existing projections for 2026 revenue growth, may have disappointed some, but it's for a seemingly excellent reason: "Given our strong results to date, we're reaffirming our full-year 2026 guidance for 9% to 10% revenue growth and EPS of $17.30 to $17.90, and decided to increase our investments in marketing and technology to capitalize on long-term growth opportunities," said CEO Stephen Squeri.
This shows the company thinking long-term and making investments that it expects will pay off down the road. With the recent stock pullback, American Express shares are now priced rather reasonably and warrant consideration by long-term investors.
Should you buy stock in American Express right now?
Before you buy stock in American Express, consider this:
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American Express is an advertising partner of Motley Fool Money. Selena Maranjian has positions in American Express and Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.
