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.
Impressive, right? You might not be surprised to learn that it’s long been a top holding of Warren Buffett’s company, Berkshire Hathaway. Most recently, it was the second-largest position, valued at $56 billion and representing 22% of American Express’ total value.
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.