1 Top Dividend Stock to Buy With Double-Digit Dividend and Earnings Growth

Core Insights - American Express shares have recently declined to around $300 from a 52-week high of over $387, raising questions about market pessimism versus stock valuation [1] - The company's strong business momentum and aggressive capital return strategy suggest this may be a good buying opportunity [1][3] Financial Performance - American Express expects earnings per share for 2026 to be between $17.30 and $17.90, indicating over 14% year-over-year growth [4] - In 2025, the company generated $72.2 billion in total revenue, a 10% year-over-year increase, and returned $7.6 billion to shareholders [5] - The quarterly dividend was increased by 16% to $0.95 per share, resulting in a dividend yield of 1.3% [6] Strategic Focus - The company targets high-spending consumers, which drives reliable growth [7] - A major refresh of the Platinum Card included a fee increase from $695 to $895, accompanied by new lifestyle and travel perks to retain affluent customers [8][9] - Net card fees reached $10 billion in 2025, an 18% year-over-year increase, demonstrating effective engagement strategies [10] Valuation and Market Position - American Express shares are currently trading at about 17 times the $17.60 midpoint of management's 2026 earnings guidance, indicating a reasonable valuation [12] - The company's double-digit earnings growth, recent dividend hike, and active buyback program support the justification of its current valuation [13]