Meet the Dow Jones Dividend Stock That’s on Pace to Beat the S&P 500 for the Fifth Consecutive Year. Here’s Why It’s Still a Buy Now.

• American Express on the right path to provide a higher return on the S&P 500 index for the fifth year in a row.

• Her business model is completely different from Visa and MasterCard.

• American Express meets the needs of wealthy consumers, which makes it in a good position to withstand the economic slowdown.

• 10 shares we love better than American Express ›

the S & P 500 (Snpindex: ^Gspc) For the past five years, it has largely doubled thanks to major technology shares such as “Ten Titans”. Many companies that focus on value that distribute a large part of their profits to shareholders through asphalt profits have reduced the index during this period of domination on technology shares. But no Dow Jon’s industrial average (Djindices: ^DJI) component American Express (NYSE: Axp).

The financial services giant has produced a total return of 269 % in the past five years and is on the right path to overcome the S&P 500 index for the fifth year in a row in 2025.

Here is the reason that the American Express continues to flourish in a market dominated by growth, and why it can be buying now, even at its highest levels ever.

American Express acts as a payment processor and a bank by issuing cards and managing risk associated with customers who pay their balances. while Visa (Nyse: v) and MasterCard (Nyse: ma) They only serve as a payment processor, risk passing to subsidiary banks such as Jpmorgan Chase and Citigroup. VISA and MasterCard business models and capital business models give much higher operating margins than American Express. But American Express has proven that her approach provides more bullish capabilities and faster growth.

The American Express Cards come first with relatively expensive annual fees, but also some generous privileges. American Express attracts wealthy clients who are likely to manage their spending. Customer privileges stimulate their cards for the largest possible number of purchases. The privileges come at a cost, as the expenses of the American Express member are almost multiplied by the fees they collect from the membership. But it is worth it because the American Express achieves a lot in debit revenue (merchant fee). It tends to impose higher fees on VISA and MasterCard merchants to help compensate for losses on membership rewards.

The American Express expanded its network, making it more attractive to merchants to accept her cards, even if they have to pay higher fees. The result is the effect of snowball, as current customers use their American Express cards, and potential customers may make a decision to register for a card due to the privileges and accept it widely.

American Express outperformed the performance of Visa and MasterCard over the past year, three years and five years-but has left all of its peers over the past decade. It is possible that one of the effects of wealthy customers will likely focus, making it more flexible in a possible decrease in spending on consumer spending, making it more flexible in possible economic deflation or a long period of consumer spending.

Financial security is closely related to spending. The person who lives in a salary without an emergency box is likely to be an inflation and the cost of wage growth that exceeds the wage more than one person who has a more fundamental financial pillow. Moreover, many different assets categories are in or near their highest levels ever-from the American stock market to real estate prices and even gold. Individuals who have benefited from expanding value in these groups may be better than they were when inflation was less.

As we mentioned, the S&P 500 has doubled in the past five years – the inflation has almost increased. So people who have a lot of stocks have seen their wealth complex may not face any problems in paying goods and estimated services even if prices rise. This is the Group of Consumers targeted by the American Express, which makes it a great bet for the investors concerned with the weak labor market or high inflation.

Even if the pressure of consumer spending continues, VISA and MasterCard will continue to generate strong returns because they make money every time the card is passed, exploited or processing digitally, regardless of the volume of treatment. But it can be said that it is more sensitive to withdrawal in appreciated spending by the American Express.

The Federal Reserve’s decision to reduce interest rates may be a blessing for Americans Express, visas and master. But the American Express is a safer bet for investors who appreciate companies with loyal customer bases.

The visa and MasterCard are huge, high -sideline companies. But the American Express is the best purchase of investors looking for a more stagnant stagnation company with less expensive assessment and at the highest profit return value. The American Express has a price ratio to only 22.2 profits. Its return is only 1 %, but this is mainly due to the fact that the shares have achieved well and outperformed the rate of profit growth. American Express has enhanced its impressive rates in recent years. It was 17 % newest, and the payment has almost doubled over the past decade.

Finally, the American Express is still a great stock for purchase now and has what is necessary to continue to provide strong returns for years to come.

Before purchasing stocks at America Express, think about this:

the Motley Adviser is a lie The analyst’s team has just identified what they think 10 best stocks For investors to buy now … American Express was not one of them. The ten shares that made the pieces can produce monster revenues in the coming years.

Look at when Netflix This list was submitted on December 17, 2004 … if you invest $ 1,000 at the time of our recommendation, You will have 652,872 dollars!* Or when Nafidia This list was presented on April 15, 2005 … if you invest $ 1,000 at the time of our recommendation, You will have 1,092,280 dollars!

Now, it is worth noting Stock consultant The average total return is 1062%-Crushing supremis to the market compared to 189 % on the S&P 500 index. Stock consultant.

See the ten stocks »

*The stock consultant dates back from September 22, 2025

American Express is an advertising partner for Motley Fool Money. Jpmorgan Chase is a Motley Fool Money advertising partner. Citigroup is an advertising partner for Motley Fool Money. Daniel Veterber has no position in any of the mentioned shares. Motley Fool has positions in JPMorgan Chase, MasterCard and Visa. Motley Fool has a disclosure policy.

Learn about the arrow of Dow Jones Fuisund, which is traveling quickly to overcome the S&P 500 index for the fifth year in a row. This is why it is still a purchase now. It was originally published by Motley Fool