Benzinga - ZINGER KEY POINTS
- Amex's market capitalization is $128 billion.
- Amex investors saw 70% growth in 5 years, with Buffet owning over 20% of the stock.
- Amex increased its dividend and launched a share repurchase plan, showing a commitment to value.
With a market capitalization of over $128 billion, American Express Company (NYSE: AXP) stands as an immovable giant in the business world - one of the biggest companies around and undoubtedly here to stay.
American Express investors have enjoyed a tasty 70% growth in the last five years, with Warren Buffet's more than 20% ownership of Amex stock providing an added sweetener. Their investment decisions could not have been timed better as they reap their well-deserved rewards!
They recently announced a significant dividend increase and launched an impressive share repurchase plan this March. Shareholders can now expect to receive 60 cents per share, an increase of 15%, while the board is signaling confidence in their commitment to long-term value creation for customers.
American Express has experienced a remarkable rally since the financial crisis of 2007-2009, soaring 1438% from its low point to over $155 per share. This robust growth shows no signs of slowing down anytime soon and continues to offer investors significant upside potential.
Along the journey, we've experienced intense dips, with one correction even plummeting more than half its value. However, each time has been met by impressive rebounds and a return to growth.
February 2022 created a record-breaking moment for this stock, soaring to almost $200 before stalling just shy of this significant milestone by a mere 45 cents.
Even though the price for this stock has been unpredictable, it's remained in a wide range between $130 to $199. A decisive break from either end could help provide insight into where price may head next!
This stock has the potential to reach heights unseen before. However, 25% or more recovery is necessary to get there. Past behaviour suggests that this should not be out of reach. Not to mention, the long-term trend is decidedly bullish.
After the closing bell on Monday, March 13, the stock closed at $157.63, trading down by -4.87%.
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