Warren Buffett owns American Express as one of Berkshire Hathaway’s largest positions, and he’s held it for decades.
In fact, the Oracle of Omahaearns over $575 million in annual dividends from American Express (AXP) stock.
With Q1 2026 earnings due April 23, investors are watching the bank stock closely. The question on everyone’s mind: Will recent changes to its popular Platinum Card help AXP beat Wall Street‘s estimates, allowing management to once again increase its dividend payout?
Dividends matter more to investors than people often realize, something that isn’t lost on Buffett, whose Berkshire Hathaway owns 22% of American Express stock, making him the single largest shareholder by far.
Vanguard’s portfolio managerSharon Hill put it plainly:
“Whether an investor needs income and/or simply values the attributes of higher-dividend-paying companies, an active fund that seeks high-quality companies with stable dividend yields may be suitable.”
American Express has become exactly that kind of company over the past several years.
For income-focused investors, here’s where American Express stands as a dividend stock right now:
The yield is modest, but the growth rate is exceptional. A 17% annual dividend growth rate, compounded over five years, is rare in financial services, a cyclical sector.
And with a payout ratio around 22%, there’s plenty of room for continued increases.
In the Q4 earnings call, CEO Stephen Squeri said the company plans to grow its dividend in line with EPS, targeting a 20%–25% payout ratio. Notably, the dividend has increased from $1.72 per share in 2021.
Founded in 1850 and headquartered in New York, American Express operates a closed-loop payments network, serving as both the card issuer and the merchant acquirer.
That gives it an edge most competitors can’t replicate.
The business is split into four segments: U.S. Consumer Services, Commercial Services, International Card Services, and Global Merchant and Network Services.
Source: finance.yahoo.com
