American Express Company, together with its subsidiaries, operates as integrated payments company in the United States, Europe, the Middle East and Africa, the Asia Pacific, Australia, New Zealand, Latin America, Canada, the Caribbean, and Internationally. It operates through four segments: U.S. Consumer Services, Commercial Services, International Card Services, and Global Merchant and Network Services. The company's products and services include credit card, charge card, banking, and other payment and financing products; network services; expense management products and services; and travel and lifestyle services. It also provides merchant acquisition and processing, servicing and settlement, point-of-sale marketing, and information products and services for merchants; and fraud prevention services, as well as the design and operation of customer loyalty programs. In addition, the company operates lounges at airports under Centurion Lounge brand name. It sells its products and services to consumers, small businesses, mid-sized companies, and large corporations through mobile and online applications, affiliate marketing, customer referral programs, third-party service providers and business partners, direct mail, telephone, in-house sales teams, and direct response advertising. American Express Company was founded in 1850 and is headquartered in New York, New York.

American Express Company

Key Points
Dividend stocks provide security for any kind of portfolio, and even growth investors should have some.
These excellent, long-term businesses can support a growing dividend.
The S&P 500 is generally flat in this first month of 2026, coming off the heels of three years of double-digit growth. The next 11 months could bring any number of unanticipated news and market drivers, but the short-term movement is likely to be dictated by the numerous important earnings reports in the coming weeks.
Since there will always be periods of volatility mixed into periods of market growth, it's important to have some excellent dividend stocks in your portfolio. Some investors, especially retirees, might want to be highly dividend focused, but even growth-focused investors should keep a store of great dividend picks to protect their funds under any conditions.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
If you need some inspiration, here are 10 top dividend stocks that you can hold forever.
1. Coca-Cola
Coca-Cola (NYSE: KO) is a Dividend King that's raised its dividend annually for the past 63 years. That's one of the best track records on the market. The dividend is supported by the company's robust business model, featuring beverages consumers love to buy and acquisitions that bring even more growth. Coke's dividend yields 2.8% at the current price.
2. Realty Income
Realty Income (NYSE: O) is a real estate investment trust (REIT) that owns 15,500 properties worldwide, making it one of the largest REITs in the world. Its tenants are largely giant retail chains that are solid and reliable rent payers, and it has a large pipeline of new properties to buy, as well as capital.
The company pays a monthly dividend and has done that 667 times without missing a month. The dividend yields 5.3% at the current price, the highest on this list.
3. Walmart
Walmart (NASDAQ: WMT) is still the largest company in the world by sales, with more than $700 billion in trailing-12-month revenue. It operates more than 10,800 stores worldwide.
The company is always finding new ways to grow, including opening new stores and expanding in new ways, like e-commerce and premium products. Walmart is also a Dividend King and has raised its dividend annually for the past 52 years. The dividend yields a lower 0.8% at the current price because Walmart stock has performed so well recently.
4. Bank of America
Bank of America (NYSE: BAC) is the second-largest bank in the U.S. and continues to add millions of new accounts and grow its business in multiple ways. It's often reflects the U.S. economy and grows along with it, giving it a long runway. Bank of America's dividend yields 2.1% at the current price.
5. Home Depot
Home Depot (NYSE: HD) is the largest home-improvement chain in the world, giving it a dominant position in an industry that everyone needs. It happens to be under pressure right now in the poor real-estate environment, but even under these conditions, it's reporting higher sales.
Home Depot stock is down 7% over the past year. At the lower price, the dividend is yielding 2.4%.
6. American Express
American Express (NYSE: AXP) has been around for 150 years providing financial services and has succeeded in changing along with the times. It has developed a robust, fee-based model that targets an affluent clientele, and its dual credit card network and bank businesses create resilience under most circumstances.
Despite its age, it's still relevant, and American Express stock has outperformed the market by a wide margin over the past three years. The dividend yields 0.9% at the current price.
7. Costco Wholesale
Costco Wholesale (NASDAQ: COST) also has a fee-based membership that generates loyalty and volume. Costco does well in any economy but has some of its best performance when there's financial pressure and customers want to get the best prices.
It has under 1,000 stores worldwide and continues to expand at a deliberate pace, leaving plenty of room to keep growing. Costco's dividend only yields 0.5% at the current price, but the company has paid a large special dividend every few years, as well.
8. Moody's
Moody's (NYSE: MCO) is one of a small group of premier rating agencies that dominate a sector with high barriers to entry, giving it an edge in a market with long-term tailwinds. It's also increasingly moving into data and insights, using an artificial intelligence (AI) platform that offers real value for clients. And, business has been booming. Moody's dividend yields 0.7% at the current price.
9. Prologis
Prologis (NYSE: PLD) is also a REIT with properties that are concentrated in e-commerce logistics, a growing industry. It's also stepping into data centers, which are exploding today. In other words, there's a long-term growth runway in its existing industries, as well as new technology horizons. The company's dividend yields 3.2% at the current price.
10. NextEraEnergy
NextEra Energy (NYSE: NEE) is a utility and energy company that owns the largest electric utility in the U.S. It's focused on renewable energy and is one of the world's largest wind and solar energy producers, as well as a leader in energy storage. NextEra Energy's dividend yields 2.7%, and the company is targeting annual dividend growth of 10%.
Should you buy stock in Coca-Cola right now?
Before you buy stock in Coca-Cola, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Coca-Cola wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $461,527!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,155,666!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 197% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of January 29, 2026.
Bank of America is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. Jennifer Saibil has positions in American Express and Walmart. The Motley Fool has positions in and recommends Costco Wholesale, Home Depot, Moody's, NextEra Energy, Prologis, Realty Income, and Walmart. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

10 Dividend Stocks to Buy Today and Hold Forever

Key Points
Amex has experienced a slowdown in its growth rate in recent years, but it remains around double digits.
With a P/E multiple of 24, it is a reasonably priced investment.
The government is trying to put in a cap on credit card interest rates, and that has weighed on the stock this year.
One of the best financial stocks to own in recent years has been American Express (NYSE: AXP). The company is a top credit card issuer and caters to an affluent customer base that's been willing to spend heavily, even amid inflation and growing economic concerns. The stock is up over 210% in just the past five years, which is far better than the S&P 500's gains of around 81% in the same period (returns are as of Jan. 27).
For investors, the inevitable concern after such a strong rally is whether the stock is still a good buy or has gotten too expensive. Let's take a look at Amex's fundamentals and overall valuation to see if this is a stock that's still worth buying today.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
The company's growth rate has been declining but remains positive
In previous years, Amex was growing much faster than it is now. But with the company still generating growth around the double digits, it seems to be doing well, even while other businesses are struggling. It shows excellent resilience. Amid more favorable economic conditions, the company's growth may accelerate.
It's currently trading at a price-to-earnings (P/E) multiple of 24, and its valuation looks reasonable given the rate of growth. At a higher premium, you'd likely expect stronger growth. But its P/E multiple is actually lower than the S&P 500 average of 27, and you could make the case that more of a rally is justifiable for the stock.
Is Amex's stock likely to rise even higher this year?
Year to date, Amex's stock has fallen by 2% as concerns about the government putting a 10% cap on credit card interest rates has investors pulling back on many financial stocks. The proposed legislation could stifle growth prospects for credit card companies such as Amex, which would need to be more careful about whom they extend credit to.
If such legislation ends up passing, it could hurt Amex and other financial stocks. But President Donald Trump is calling for a 10% cap to be put in place for only one year. For now, long-term investors don't need to worry.
What's important is that with a solid brand, consistent and steady growth, and an attractive valuation, Amex remains a good stock to buy, even with its valuation having risen sharply in recent years. While it may stumble this year due to the uncertainty around government legislation, it can still be an excellent investment for the long haul.
Should you buy stock in American Express right now?
Before you buy stock in American Express, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and American Express wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $461,527!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,155,666!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 197% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of January 29, 2026.
American Express is an advertising partner of Motley Fool Money. David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Up More Than 210% in 5 Years, Can American Express Stock Still Rise Higher?

Bank Profits Rise Amid Credit Card Uncertainty

American Express Company AXP is set to report fourth-quarter 2025 results on Jan. 30, 2026, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $3.55 per share, and the same for revenues is pinned at $18.82 billion.
The fourth-quarter earnings estimate witnessed one upward revision over the past month against two downward movements. Nevertheless, the bottom-line prediction indicates a year-over-year increase of 16.8%. The Zacks Consensus Estimate for quarterly revenues implies year-over-year growth of 9.6%.
Image Source: Zacks Investment Research
For the full-year 2025, the Zacks Consensus Estimate for AmEx’s revenues is pegged at $72.06 billion, implying a rise of 9.3% year over year. Meanwhile, the consensus mark for the full year EPS is pegged at $15.40, implying growth of 15.4% on a year-over-year basis.
AmExbeat the consensus estimate in each of the last four quarters, with the average surprise being 4%.
American Express Company Price and EPS Surprise
Q4 Earnings Whispers for AmEx
However, our proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.
AXP has an Earnings ESP of -0.97% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
What Is Shaping AmEx’s Q4 Results?
American Express is expected to have witnessed a rise in network volumes during the fourth quarter, continuing the trend. This uptick is likely attributable to the resilient consumer spending of AXP’s premium customer base, which is less impacted by economic volatilities. The Zacks Consensus Estimate for fourth-quarter total network volumes indicates 8.3% year-over-year growth from $464 billion.
Discount revenues, a key source of revenues for AmEx, are likely to have benefited from rising network volumes. The Zacks Consensus Estimate for fourth-quarter Discount revenues indicates 7.1% year-over-year growth. Billed businesses in U.S. Consumer Services and Commercial Services are expected to witness growth of 7.4% and 3% year over year, respectively.
Cards-in-force are likely to have witnessed an uptick in the quarter under review due to expanding product offerings and enhancing mobile platforms, which improve the customer experience. The Zacks Consensus Estimate for fourth-quarter total cards-in-force indicates 4.7% year-over-year growth. The consensus estimate for Average Card Member loans also implies an 8% year-over-year increase.
AmEx’s interest income, another major revenue contributor, is likely to have risen on higher loan receivables. The Zacks Consensus Estimate for AXP’s net interest income implies an upside of 11.7% from the year-ago reported figure.
The factors mentioned above are expected to have positioned American Express for year-over-year growth in the fourth quarter. However, an increase in customer engagement and operating costsis likely to have partially offset the positive impacts.
Fourth-quarter client engagement costs are likely to have increased due to expanding Card Member spending and higher usage of travel and lifestyle-related benefits. Also, the Zacks Consensus Estimate for pre-tax income from Commercial Services indicates a 6.9% decline from a year ago.
Stocks That Warrant a Look
While an earnings beat looks uncertain for AmEx, here are some companies from the broader Finance space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
Credicorp Ltd. BAP has an Earnings ESP of +3.41% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Credicorp’s bottom line for the to-be-reported quarter is pegged at $6.55 per share, which remained stable over the past week and indicates 74.2% year-over-year growth. The consensus estimate for Credicorp’s revenues is pegged at $1.79 billion, a 26.7% increase from a year ago.
Cboe Global Markets, Inc. CBOE has an Earnings ESP of +9.25% and a Zacks Rank of 2.
The Zacks Consensus Estimate for Cboe Global’s bottom line for the to-be-reported quarter is pegged at $2.69 per share, a 28.1% jump from a year ago. The consensus estimate for Cboe Global’s revenues is pegged at $621.63 million, an 18.5% year-over-year jump.
Ameriprise Financial, Inc. AMP has an Earnings ESP of +1.87% and a Zacks Rank of 3.
The Zacks Consensus Estimate for Ameriprise Financial’s bottom line for the to-be-reported quarter is pegged at $10.29 per share, which indicates 9.9% year-over-year growth. The consensus estimate for Ameriprise Financial’s revenues is pegged at $4.71 billion, a 5.5% increase from a year ago.
Quantum Computing Stocks Set To Soar
Artificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.
Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.
Access the Report Free Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

AmEx Set to Report Q4 Earnings: Key Metrics Investors Should Track

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR S&P 500 ESG ETF (Symbol: EFIV) where we have detected an approximate $167.3 million dollar outflow -- that's a 14.3% decrease week over week (from 17,300,000 to 14,825,000). Among the largest underlying components of EFIV, in trading today American Express Co. (Symbol: AXP) is up about 0.2%, Welltower Inc (Symbol: WELL) is up about 0.7%, and Stryker Corp (Symbol: SYK) is higher by about 0.5%. For a complete list of holdings, visit the EFIV Holdings page » The chart below shows the one year price performance of EFIV, versus its 200 day moving average:
Looking at the chart above, EFIV's low point in its 52 week range is $46.165 per share, with $67.79 as the 52 week high point — that compares with a last trade of $67.76. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Also see:
Asset Management Dividend Stocks
SPXU shares outstanding history
DSY Historical Stock Prices
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy ETF Outflows: EFIV, AXP, WELL, SYK

Key Points
Greatmark Investment Partners acquired 16,560 RH shares, for an estimated trade size $2.83 million (based on average prices in the fourth quarter of 2025).
Greatmark now holds 97,575 RH shares worth $17.48 million
RH now accounts for 2.07% of the fund's AUM, placing it outside the fund's top five holdings.
On Jan. 27, 2026, Greatmark Investment Partners reported buying 16,560 shares of RH (NYSE:RH), an estimated $2.83 million trade based on quarterly average pricing.
What happened
According to a SEC filing dated Jan. 27, 2026, Greatmark Investment Partners increased its position in RH by 16,560 shares during the fourth quarter of 2025. The estimated value of the shares acquired, calculated using the quarterly average closing price, was $2.83 million. The value of the RH position at quarter-end increased by $1.02 million, a figure that incorporates both trading activity and price movements.
What else to know
The fund’s RH stake now represents 2.07% of reported AUM after this buy.
Top holdings after the filing:
NYSE:AFL: $64.90 million (7.7% of AUM)
NYSE:AXP: $40.54 million (4.8% of AUM)
NASDAQ:AAPL: $38.71 million (4.6% of AUM)
NASDAQ:MSFT: $34.06 million (4.0% of AUM)
NYSE:AN: $33.45 million (4.0% of AUM)
As of Jan. 26, 2026, RH shares were priced at $219.09, down 46.7% over the past year and underperforming the S&P 500 by 61.6 percentage points.
Company overview
Revenue (TTM)
$3.41 billion
Net income (TTM)
$109.93 million
Price (as of market close 1/26/26)
$219.09
One-year price change
(46.67%)
Company snapshot
RH offers a broad portfolio of home furnishings, including furniture, lighting, textiles, bathware, décor, outdoor and garden products, and child and teen furnishings.
The company generates revenue through direct-to-consumer retail channels, including physical galleries, outlet stores, catalogs, and e-commerce platforms.
It targets affluent residential customers seeking premium home furnishings and design-driven products across the United States, Canada, and the United Kingdom.
RH is a leading specialty retailer in the home furnishings sector, operating a multi-channel platform that integrates physical retail galleries, digital commerce, and curated catalogs. The company’s strategy emphasizes differentiated design, premium product assortments, and immersive retail experiences to capture share in the high-end home market. RH’s competitive edge lies in its brand positioning, distinctive merchandising, and ability to serve design-oriented consumers seeking luxury home solutions.
What this transaction means for investors
One reason for the poor performance of RH stock over the past year has been added costs due to tariffs. Yet management has done a good job navigating a tough environment. Third-quarter revenue rose 9% despite what the company called “the worst housing market in almost 50 years, and the polarizing impact of tariffs.”
Investors have begun to recognize the strength of the business, even with the overhang of sluggish operating margins from higher tariff effects than anticipated. Shares have jumped 13.5% to start off 2026. That is likely due to the belief that the tariff picture is becoming more clear.
Earlier this month, President Trump paused a previously announced increase on tariffs for upholstered furniture. That gave investors a reason to buy the dip in RH shares.
With the additional shares, RH now accounts for 2.07% of Greatmark’s AUM, still leaving it outside the fund's top five holdings. There does seem to be more potential upside for RH, too. Signs of a housing recovery would likely cause the stock to jump again. Those who want a stake in housing and furniture stocks may want to start a position before that occurs.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 946%* — a market-crushing outperformance compared to 196% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.
*Stock Advisor returns as of January 27, 2026.
American Express is an advertising partner of Motley Fool Money. Howard Smith has positions in Apple and Microsoft. The Motley Fool has positions in and recommends Apple and Microsoft. The Motley Fool recommends RH. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why 1 Fund Is Loading Up on RH Stock

Payments giant Mastercard Incorporated MA is set to report fourth-quarter 2025 results on Jan. 29, 2026, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $4.20 per shareon revenues of $8.74 billion.
The fourth-quarter earnings estimate witnessed one upward revision and two downward movements over the past month. Yet, the bottom-line projection indicates an increase of 10% from the year-ago reported number. The Zacks Consensus Estimate for quarterly revenues suggests year-over-year growth of 16.7%.
Image Source: Zacks Investment Research
For full-year 2025, the Zacks Consensus Estimate for Mastercard’s revenues is pegged at $32.73 billion, implying a rise of 16.2% year over year. Also, the consensus mark for 2025 earnings per share is pegged at $16.44, implying a jump of 12.6% on a year-over-year basis.
Mastercard has a robust history of surpassing earnings estimates, beating the consensus estimate in each of the last four quarters, with the average surprise being 3.1%. This is depicted in the figure below.
Mastercard Incorporated Price and EPS Surprise
Q4 Earnings Whispers for Mastercard
Our proven model predicts a likely earnings beat for the company this time around as well. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is precisely the case here.
MA has an Earnings ESP of +0.62% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
What’s Shaping Mastercard’s Q4 Results?
Both the Zacks Consensus Estimate and our model estimate for the company’s total Gross Dollar Volume (GDV) for all MA-branded programs suggest an around 11% rise from the prior-year quarter’s reported figure. We expect GDV from domestic operations to increase by 8% year over year and 17.1% from European operations.
Switched transactions are expected to have experienced an upsurge, driven by resilient consumer spending and increased contactless acceptance initiatives pursued by the company. The Zacks Consensus Estimate for its switched transactions indicates a 9.4% rise from the prior-year quarter’s reported figure. Other companies like Visa Inc. V and American Express Company AXP are also expected to witness strong growth in transactions (9.5% and 8.3%, respectively) in the to-be-reported quarter.
Increasing cross-border travel is expected to have had a positive impact on Mastercard's cross-border volumes. As such, the consensus estimate for cross-border assessments suggests an increase of 18.1% compared with the previous year. Further, the consensus mark implies domestic assessments and transaction processing assessments to witness a 11.9% and 14.3% year-over-year increase, respectively.
The Zacks Consensus Estimate for Value-added Services and Solutions net revenues indicates 23.1% year-over-year growth, while our model estimate suggests nearly 20% increase in the fourth quarter. Growing demand for its consulting and marketing services and loyalty solutions is likely to have driven this metric.
The above-mentioned factors are expected to have positioned the company not only for year-over-year growth but also for a likely earnings beat. The positives are expected to have been partially offset by rising expenses, rebates and incentives.
Mastercard’s adjusted operating costs are likely to have increased in the fourth quarter due to higher G&A costs and Advertising & Marketing expenses. We expect total adjusted operating expenses to rise nearly 19% from the prior-year quarter’s actuals. Furthermore, our estimate for payments network rebates and incentives suggests a 21.6% year-over-year increase.
Mastercard’s Price Performance & Valuation
Over the past three months, Mastercard declined 6.8%, while Visa fell 5.3%, but American Express gained 0.6%. All of these stocks outperformed the industry’s 8.8% decline. Meanwhile, the S&P 500 Index grew 1.4%.
Price Performance – MA, V, AXP, Industry & S&P 500
Image Source: Zacks Investment Research
Now, let’s look at the value Mastercard offers investors at current levels.
The company’s valuation looks stretched compared with the industry average, despite the declines. Currently, Mastercardis trading at 27.35X forward 12-month earnings, above the industry’s 19.43X. In comparison, both Visa and American Express offer better value at the moment, trading at a forward P/E of 24.59X and 21.56X.
Image Source: Zacks Investment Research
How Should You Play Mastercard Ahead of Q4 Earnings?
Mastercard remains a high-quality payments company with durable long-term tailwinds, but current conditions argue for patience rather than immediate action. While investor interest is broadening beyond AI-heavy trades toward cash-generative business models, Mastercard’s recent pullback has not fully reset valuation expectations. The stock still trades at a clear premium to the payments industry and to peers like Visa and American Express, limiting near-term upside.
Operationally, fundamentals remain solid. Transaction volumes continue to grow at a healthy pace, cross-border activity is rebounding alongside travel, and value-added services are expanding rapidly, strengthening recurring, high-margin revenues. These factors reinforce Mastercard’s long-term growth story and its appeal as a core holding over a full cycle.
However, near-term risks are becoming more visible. Regulatory and legal pressures in the U.K. and U.S. create headline risk, while competition from nimble fintechs and alternative payment rails continues to intensify. At the same time, broader market rotation and macro uncertainty could drive further multiple compression across premium financial franchises.
Taken together, Mastercard’s quality is not in doubt, but with fourth-quarter earnings around the corner, investors may be wise to hold for now and wait for a more attractive entry point.
Just Released: Zacks Top 10 Stocks for 2026
Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.
From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.
Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is Mastercard Stock a Smart Bet Ahead of Q4 Earnings? Key Estimates

Key Points
In his 2022 annual letter, Warren Buffett invited readers to "peek behind the curtain" to understand Berkshire Hathaway's success.
Almost immediately, he singled out two stocks.
Three years after he called their dividend growth "as certain as birthdays," their payouts have risen by 21% and 91%.
In his 2022 annual letter to Berkshire Hathaway shareholders, Warren Buffett had no shortage of good news to tout. Since he took the helm of Berkshire in 1964, the conglomerate had notched a 3,787,464% gain, compared to 24,708% for the S&P 500 -- enough to turn every $1 initially invested into $37,875.
Yet the first number he brought up, apart from calling his capital allocation decisions in his 58-year tenure "so-so," was to cite two investments that he said were central to Berkshire's success.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
These two companies, each of which Berkshire coincidentally had invested $1.3 billion into, now paid annual dividends amounting to almost half of Berkshire's initial investment. This yield on cost was, Buffett predicted, highly likely to grow thanks to dividend hikes.
Of course, this was more than three years ago. What were the two dividend stocks that Buffett felt deserved a special mention? And was his confidence in them well-placed?
1. Coca-Cola
Buffett established his position in soft drink giant Coca-Cola (NYSE: KO) over a seven-year period, buying his 400 millionth share in August 1994.
He hasn't bought a share since, but neither has he sold. And there's a good reason.
In 1994, Berkshire was receiving $75 million a year in dividends from Coca-Cola. During the next 28 years, as the dividend increased each year, that number swelled to $704 million in 2022.
Today, Coca-Cola shares yield 2.8%. But while the $1.3 billion Buffett paid for his investment remains fixed, the annual dividend's continued growth pushed his yield on cost up to almost 50%. That's a remarkable feat considering that the S&P 500 has averaged annual returns of 10.5% during the past 70 years.
And since Buffett's 2022 letter, the dividend had been boosted each year as he predicted. Those 400 million shares now pay Berkshire $206 million a year in dividends, at least until this March, when the company's next quarterly dividend will go out after its expected 64th annual dividend increase.
2. American Express
The other income stock Buffett highlighted, the credit card company American Express (NYSE: AXP), may not have as storied a dividend history as Coca-Cola's 63-year streak of annual payout hikes. But in recent years it's raised its dividend far faster, with payouts rising by 91% in the years since Buffett's letter.
Today, American Express shares yield less than 1%, as a 191% gain in share price during the last five years has pushed the yield down. But to Buffett, I suspect his yield on cost is far more important. Annual dividends, which totaled $302 million in 2022, have now grown to $577 million, or almost half of Buffett's initial investment.
Can they keep it up?
Coca-Cola's management doesn't release dividend forecasts. However, with more than 50 years of dividend growth to its name, it has won the title of Dividend King, which barely one in 1,000 companies have achieved. Because management will be loathe to give that up, it's very likely to announce yet another dividend hike next month, especially since it achieved robust earnings growth of 30% year over year last quarter.
In the case of American Express, the company increased its annual card fees for the 29th consecutive quarter in Q3, and we'll see if the trend persists in its Q4 earnings call scheduled for Jan. 30. With earnings up 19% year over year, the company should have no difficulty raising its dividend, especially considering how its $2.3 billion in share repurchases means that the company will be mailing checks on fewer shares.
With fundamentals and track records like these, you can see why Buffett highlighted Coca-Cola and American Express as examples of "the secret sauce" behind Berkshire's stunning success. And as in 2022, their payouts look highly likely to rise in the years ahead.
Should you buy stock in Coca-Cola right now?
Before you buy stock in Coca-Cola, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Coca-Cola wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $464,439!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,150,455!*
Now, it’s worth noting Stock Advisor’s total average return is 949% — a market-crushing outperformance compared to 195% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of January 27, 2026.
American Express is an advertising partner of Motley Fool Money. William Dahl has positions in Coca-Cola. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Warren Buffett Once Called These Stocks' Dividend Growth "as Certain as Birthdays." Here's How They're Doing.

Key Points
Warren Buffett stepped down as CEO of Berkshire Hathaway at the end of 2025.
But his investing legacy continues through Berkshire's various holdings.
Buffett likes stocks with strong competitive moats and global brand names.
In just a couple of weeks, we'll see the final moves that Berkshire Hathaway made to its venerable portfolio under the direct guidance of Warren Buffett, the legendary investor who stepped down as CEO at the end of 2025, after a 60-year run.
Changes to Berkshire's investment portfolio from the fourth quarter will be disclosed on the company's regular Securities and Exchange Commission Form 13F, which is due 45 days after the end of the quarter. It will be interesting to see what moves, if any, that Buffett approved in his final days before handing control off to his top lieutenant, Greg Abel.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Buffett's time as Berkshire Hathaway's CEO has come to an end, but I expect his vaunted investing principles to remain a signature of the conglomerate he led for decades. Berkshire's investment portfolio includes dozens of companies and is valued at more than $300 billion.
Buffett was a champion of buy-and-hold investing, so let's look at five stocks from his playbook. Each of them held a spot in the Berkshire Hathaway portfolio at the end of 2025, and each of them could help you establish a strong foundation in your investments for the long haul.
Apple
Apple (NASDAQ: AAPL) has been a cornerstone of the Berkshire portfolio for years. Buffett has publicly expressed his admiration for Apple's products and services -- smartphones, computers, wearables, tablets, and its App Store and services division -- and its customer loyalty.
Berkshire has been selling a lot of Apple stock lately. At the end of 2023, the conglomerate held 906 million shares, but that was down to 238.2 million at the end of 2025.
Still, I don't see that as a sign of trouble; I see it as a smart decision to diversify after a position had become overweight. Even after selling all those shares, Apple still makes up 19% of Berkshire's total portfolio -- the largest weighting of any stock held by the company.
American Express
Buffett loves credit card companies; Berkshire owns stock in both Mastercard and Visa. But those positions are tiny compared to the 151.6 million American Express (NYSE: AXP) shares in its portfolio. Under the former CEO, Berkshire gained 22% ownership in American Express.
American Express fits the Buffett mold because its customers are loyal -- its gold and platinum business and personal cards are highly prized, and the latter's huge annual fee of $895 helps generate plenty of income.
Amex is also heavily marketing its cards toward a younger audience, with great success: The company said 64% of its new accounts in the third quarter came from millennial and Gen Z customers.
Coca-Cola
Coca-Cola (NYSE: KO) has been a Buffett favorite for a long time. Not only was he an early investor, having taken a position in the late 1980s, but he's also a fan of its flagship drink. Even when he was in his 90s, Buffett acknowledged drinking five cans of the soda every day.
Berkshire Hathaway still owns 400 million shares of Coke's stock, giving it a stake of more than 9%. That means it will continue to profit from Coca-Cola's extensive product line, which also includes juices, water, sports drinks, teas, and alcoholic beverages.
UnitedHealth Group
When Berkshire sold off Apple stock, one of the beneficiaries of that trade was UnitedHealth Group (NYSE: UNH). Buffett took a $1.57 billion position in the healthcare insurer in the second quarter of 2025, buying in as the company was reeling from a poor first-quarter earnings report that marked its first miss of analysts' expectations since the 2008-09 financial crisis.
The company had failed to correctly estimate healthcare costs -- it took a $6.5 billion hit to its Medicare portfolio and its commercial segment, which offers employer plans and coverage under the Affordable Care Act.
But management is fixing the problem, adjusting its Medicare Advantage pricing for 2026 and 2027 to restore attractive profit margins. Even though UnitedHealth Group's stock is down 32% over the last year, it's poised to bounce back in a big way.
VeriSign
You may not know what VeriSign (NASDAQ: VRSN) is, but you probably experience what it does every day: providing domain-name registry services and internet infrastructure. The company is the exclusive registrar for .com and .net domains.
This means that every day, it handles more than 450 billion queries for its domain name system (DNS) -- essentially, the process of a computer calling up a webpage. That kind of competitive moat is something right out of the Buffett playbook, and it's no wonder Berkshire Hathaway owns nearly 9 million shares of the company. In all, the conglomerate has a 9.7% stake in VeriSign.
Should you buy stock in Apple right now?
Before you buy stock in Apple, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Apple wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $464,439!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,150,455!*
Now, it’s worth noting Stock Advisor’s total average return is 949% — a market-crushing outperformance compared to 195% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of January 26, 2026.
American Express is an advertising partner of Motley Fool Money. Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Mastercard, VeriSign, and Visa. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

5 Top Buffett Stocks to Buy and Hold for the Long Haul

Key Points
Artificial intelligence stocks have led the S&P 500 higher as the bull market marches on.
But some investors today worry about how long the momentum will last.
Artificial intelligence (AI) fueled investors' optimism over the past few years -- and that fueled gains in the S&P 500, leading it to its third consecutive annual increase. And in October, the bull market officially celebrated its third anniversary. Though certain headwinds weighed on stocks here and there over the past year -- from worries about President Donald Trump's import tariffs to the pace of interest rate cuts -- the market's performance overall clearly was positive.
Why such excitement about AI? Because it's showing that it may be that next great thing in technology, revamping the way things are done and generating an explosion in revenue growth for companies. All of this helped AI stocks to soar, and at the same time, the valuations of many reached vertiginous levels. And that prompted investors to start worrying about one thing in particular late last year: a potential AI bubble.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Now you may be asking yourself: Is the AI bubble about to burst? Here's how to profit either way.
Strong AI earnings
The good news is, so far, corporate earnings and demand for AI products and services haven't supported the idea of a bubble. AI companies from Nvidia last quarter to Taiwan Semiconductor Manufacturing in the most recent quarter have reported climbing revenue and strong demand. Still, valuations overall remain high, with the S&P 500 Shiller CAPE ratio at a level it's only reached once before in history.
So, what's an investor to do in such a situation? Prepare yourself to win regardless of what unfolds in the coming quarters. Here's how to do that.
First, remember to ensure that your portfolio is well diversified across stocks and industries -- so, sure, buy shares in AI chip giant Nvidia, but at the same time, in case AI stocks tumble at some point in the future, it's also important to own stocks in steady industries such as healthcare or a strong financial player like American Express.
Look for inexpensive AI players
As you invest in AI stocks, it's a fantastic idea to look for players that are involved in the space but don't depend on it for revenue and growth. Two great examples are Amazon and Apple. Also, look for AI stocks that aren't expensive -- there are some that haven't reached exorbitant valuations. Meta Platforms (NASDAQ: META), trading at 21x forward earnings estimates, fits the bill. And this company, too, doesn't rely uniquely on AI for growth as its main business is social media -- with revenue driven by advertising.
Finally, it's important to consider your comfort with risk. If you're an aggressive investor, you may more heavily weight high-growth AI stocks in your portfolio, but if you're cautious, you should limit your exposure to such players. With all of this in mind, you may set yourself up to profit -- whether the AI bubble bursts or not.
Should you buy stock in Meta Platforms right now?
Before you buy stock in Meta Platforms, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Meta Platforms wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $464,439!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,150,455!*
Now, it’s worth noting Stock Advisor’s total average return is 949% — a market-crushing outperformance compared to 195% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of January 25, 2026.
American Express is an advertising partner of Motley Fool Money. Adria Cimino has positions in Amazon and American Express. The Motley Fool has positions in and recommends Amazon, Apple, Meta Platforms, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.