Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, credit card giant American Express (AXP 0.08%) has earned a respected four-star ranking.
With that in mind, let's take a closer look at American Express and see what CAPS investors are saying about the stock right now.
American Express facts
Headquarters (founded) |
New York (1850) |
Market Cap |
$64.0 billion |
Industry |
Consumer finance |
Trailing-12-Month Revenue |
$29.4 billion |
Management |
Chairman/CEO Kenneth Chenault |
Return on Equity (average, past 3 years) |
26.5% |
Cash / Debt |
$25.0 billion / $60.0 billion |
Dividend Yield |
1.4% |
Competitors |
Discover Financial |
On CAPS, 90% of the 3,001 members who have rated American Express believe the stock will outperform the S&P 500 going forward.
Just last week, one of those Fools, All-Star Chemdawg, succinctly summed up the American Express bull case for our community:
[Among the lowest P/E] of any card out there and the highest [dividend yield] ... and who uses paper when they have access to plastic? Swipe fees may have been lowered, but in reality this is still one of the most profitable business models around ... without the downside of dealing with the customer accounts.
If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, American Express may not be your top choice.
If that's the case, we've compiled a special free report for investors called "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.
Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.