Prediction: This Dividend-Paying Dow Jones Growth Stock Will Beat the S&P 500 For the 6th Consecutive Year in 2026

Core Insights - American Express has reached an all-time high following a strong earnings report and an increased forecast [1] Group 1: Financial Performance - American Express's stock is up 20% year-to-date, outperforming the S&P 500's 15% increase, indicating strong market performance [2] - The company reported an 11% increase in revenue net of interest expense and a 19% rise in diluted earnings per share, while also reducing its share count by 2% compared to Q3 2024 [6] - The full-year 2025 forecast has been raised, projecting revenue growth of 9% to 10% and earnings per share between $15.20 and $15.50, reflecting an approximate 15% earnings growth compared to adjusted EPS of $13.35 in 2024 [6] Group 2: Market Position and Strategy - American Express operates a different business model compared to Visa and Mastercard, issuing its own credit cards and offering charge cards and personal loans, which presents more growth potential despite higher risks [5] - The company has consistently outperformed the S&P 500 since 2021, showcasing its strong investment thesis [7] Group 3: Consumer Engagement - Card member spending increased by 8% on a foreign exchange-adjusted basis, attributed to strong retail engagement and a rebound in travel [7] - The company launched refreshed Platinum cards for U.S. consumers and businesses, which include higher fees but offer more perks, benefiting both American Express and its card members [8]