Everything You Need To Know About American Express Stock

Everything You Need To Know About American Express Stock

American Express is a global financial services company that specializes in payment cards and travel-related services around the world. The company has long been one of the favorites for long-term investors, as it has enjoyed massive growth over the years, as well as stable profitability and competitive dividend yields. 

Founded in 1850 as a delivery company in Buffalo, New York, the company has gone through several overhauls of its business - finally emerging as a modern financial services company that is well-known all around the world. 

While the 2022 bear market and conservative consumer spending have had their impact on AMX’s shares, the long-term returns delivered by the company still attract thousands of investors towards the stock every day. With the uncertain financial climate of 2023, investors are wondering whether they would be able to buy AMX stock at a discount before the market marks a turnaround. While American Express may be overly dependent on consumer spending habits, it has a robust customer base and continues to grow steadily over the years. 

10 Interesting Facts You Should Know About American Express Stock

  • American Express was initially founded as an express delivery service in 1850 in Buffalo, New York
  • American Express had its IPO on the New York Stock Exchange in 1977, under the AXP ticker
  • The stock is a constituent of the Dow Jones Industrial Average, Nasdaq-100, and the S&P 500 - three core benchmark indexes of the United States stock market
  • The company has approximately 115 million cards in circulation worldwide and ranks as the number one issue of charge cards globally
  • American Express has offices in more than 30 countries around the world
  • Stephen Squeri is the CEO of American Express and has been with the company since 1985
  • American Express is considered a blue-chip stock, which means it is a large, well-established company with a reputation for financial stability and reliable earnings growth
  • The company operates through three business segments - Global Consumer Services Group, Global Commercial Services, and Global Merchant and Network Services 
  • American Express also owns a number of subsidiaries, such as Resy - a restaurant reservation company, Accertify - an account protection services company, and Kabage - a small business funding company
  • American Express has a long history of dividend payments - dating back to 1988

American Express Stock & Financial Performance

American Express has been one of the top-performing stocks of the past five years, returning over 75% over the same period. The stock took a beating during the Covid-19 lockdowns, as consumers tried to cut down spending, which hurt the company’s short-term bottom line. 

However, the company has managed to quickly regain lost ground since the lockdown measures were lifted, which was further boosted by the government stimulus checks that went towards getting consumer confidence back to the markets. 

American Express is an attractive stock for both, long-term investors and short-term traders, for three key reasons:

  • AXP still has growth ahead and has a robust balance sheet to take advantage of said growth
  • The company maintains a 1.49% dividend yield or a quarterly dividend of $0.60 per share
  • The stock is somewhat volatile relative to its size

The stock performance of AXP throughout the past year has left more to be desired, as the stock has lost 12% of its value, which is to be expected, as bearish sentiment and increased bond yields sink the market lower. In financial terms, the Q4 2022 report was mixed for American Express:

  • Revenues increased by 8.74% - reaching $13.15 billion
  • Net income fell by 8.55% to $1.57 billion
  • The net profit margin fell to 11.96% - a 15.89% drop YoY

Investors would hope for American Express to return to its surgeon growth rate in the near future, but the likelihood of that seems slim until the broader market also swings higher. 

Pros & Cons Of Investing In American Express Stock

While investing in AMX stock may seem like a no-brainer to some investors, much of its performance depends on broader market trends. However, investors must also consider the long-term advantages and disadvantages of buying AXP shares before putting their capital at risk. 


  • Brand identity - American Express is a globally-recognized brand with a loyal customer base spanning millions of people, which is an asset that newcomers to the market do not have
  • Dividends - AXP has a long history of consistent dividend payments and growth, which is an important selling point for the stock 
  • Diversification - American Express operates in several business segments, such as commercial banking, consumer lending, and payment processing
  • Strong financials - the company is stable and profitable, with room for future growth, which allows it to pursue long-term plans with relative ease 


  • Consumer habits - much of American Express’ business model depends on consumer spending habits, which adversely affected the stock during the Covid-19 lockdowns 
  • Competition - the global financial services industry is a fiercely competitive one, which could hinder American Express’ long-term growth
  • Regulatory risks - the global financial services industry is subject to numerous strict regulations and guidelines, which poses a threat to large players, such as American Express
  • Credit loss risk - the lending business of American Express is subject to credit risk from its customers, which can be an issue during economic downturns 

Key Takeaways From Everything You Need To Know About American Express Stock

  • American Express was initially founded as an express delivery company in 1850
  • The company has since changed its business model several times and is now one of the global leaders in card charges 
  • AXP is a part of the Dow Jones, S&P 500, and Nasdaq-100 indexes, which are the most followed stock indexes in the world 
  • American Express is also involved in SME financing and banking businesses through its subsidiaries
  • The company generated $13.15 billion in the fourth quarter of FY2022

FAQs On Everything You Need To Know About American Express Stock

Is American Express stock a buy right now?

American Express stock has enjoyed substantial growth over the past five years. With uncertain global economic conditions, American Express’ stock is heavily dependent on interest rates and consumer confidence, which is unlikely to see much growth in the short term. However, the stock could be one of the top gainers once the stock market turns around again. 

Does American Express pay dividends on its stock?

American Express stock has a dividend yield of 1.49% and the company pays $0.60 per share as quarterly dividends - making it an attractive choice for dividend investors as well. 

How much is the market cap for American Express stock?

As of April 2023, American Express had a market capitalization of $120 billion - making it one of the largest financial services companies in the world.