American Express CoLIM:AXP 65 5-Year Yield-on-Cost % is 2.01 as of Jul. 04, 2026, which is 22% below its 10-year median of 2.59. GuruFocus rates LIM:AXP with a GF Score™ of 65/100 and a GF Value™ of $319.27 (Fairly Valued). The stock has 4 warning signs investors should review. Among 211 Credit Services companies, American Express Co ranks worse than 71.09% on this metric.
American Express Co's yield on cost for the quarter that ended in Mar. 2026 was 2.01.
The historical rank and industry rank for American Express Co's 5-Year Yield-on-Cost % or its related term are showing as below:
LIM:AXP'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.65 Med: 2.59 Max: 4.55
Current: 2.01
During the past 13 years, American Express Co's highest Yield on Cost was 4.55. The lowest was 1.65. And the median was 2.59.
LIM:AXP's 5-Year Yield-on-Cost % is ranked worse than 71.09% of 211
companies
in the Credit Services industry
Industry Median: 4.59
vs LIM:AXP: 2.01
American Express Co (LIM:AXP) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
American Express Co 5-Year Yield-on-Cost % Related Terms
LIM:AXP vs COF, PYPL, AFRM: 5-Year Yield-on-Cost % Comparison
For the Credit Services subindustry, American Express Co's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
American Express Co 5-Year Yield-on-Cost % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, American Express Co's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where American Express Co's 5-Year Yield-on-Cost % falls into.
American Express Co 5-Year Yield-on-Cost % Calculation
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
American Express Co (LIM:AXP) has a 5-Year Yield-on-Cost % of 2.01 as of Jul. 04, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on American Express Co and its competitors. This is 22% below median its historical median of 2.59. Over the past decade, American Express Co's 5-Year Yield-on-Cost % has ranged from 1.65 to 4.55. According to the industry distribution chart, American Express Co ranks #150 out of 211 companies in the Credit Services industry, placing it in the top 71.1%.
Is American Express Co's 5-Year Yield-on-Cost % too high?
American Express Co's current 5-Year Yield-on-Cost % of 2.01 is 22% below median its 10-year median of 2.59. Over the past 10 years, this metric has ranged from a low of 1.65 to a high of 4.55. The Credit Services industry median 5-Year Yield-on-Cost % is 4.59. American Express Co's value of 2.01 is 56.2% below this industry median. Based on the distribution chart, American Express Co ranks #150 out of 211 companies in the Credit Services industry, which is below the industry midpoint. Overall, American Express Co has a GF Score™ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does American Express Co's 5-Year Yield-on-Cost % compare to COF and PYPL?
According to the Credit Services industry distribution chart, American Express Co ranks #150 out of 211 companies for 5-Year Yield-on-Cost %. This places American Express Co in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 4.59. American Express Co's value of 2.01 is 56.2% below this benchmark. Historically, American Express Co's own 5-Year Yield-on-Cost % has ranged from 1.65 to 4.55 over the past decade. While the company's 10-year median is 2.59 vs. the industry median of 4.59, American Express Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for a Credit Services company?
The median 5-Year Yield-on-Cost % among Credit Services companies is 4.59, based on 211 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Express Co's current 5-Year Yield-on-Cost % of 2.01 is 56.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on American Express Co and its competitors. For the Credit Services industry, the median 5-Year Yield-on-Cost % is 4.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Express Co's current 5-Year Yield-on-Cost % is 2.01, which is 22% below median its own 10-year median of 2.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Express Co stock overvalued right now?
Based on GuruFocus' analysis, American Express Co (LIM:AXP) is currently considered Fairly Valued. The stock's GF Value™ is $319.27, compared to a current price of $349.00 — trading 9.3% above its estimated fair value. The current 5-Year Yield-on-Cost % is 2.01, which is 22% below median its 10-year median of 2.59 and 56.2% below the Credit Services industry median of 4.59. American Express Co's overall GF Score™ is 65/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For American Express Co (LIM:AXP), the current 5-Year Yield-on-Cost % is 2.01 as of Jul. 04, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is American Express Co (LIM:AXP) Overvalued in 2026?
Based on GuruFocus' analysis, American Express Co stock appears to be overvalued.
The current stock price of $349.00 is trading 9.3% above its estimated GF Value™ of $319.27.
GuruFocus considers American Express Co to be Fairly Valued.
Key valuation signals for LIM:AXP:
5-Year Yield-on-Cost %: 2.01 (22% below median its 10-year median of 2.59)
GF Value™: $319.27 vs. price of $349.00 (9.3% above fair value)
Industry Position: 56.2% below the Credit Services median (#150 of 211)
No single metric tells the full story. See the LIM:AXP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
American Express is a global financial institution, operating in about 130 countries, that provides consumers and businesses charge and credit card payment products. The company also operates a highly profitable merchant payment network. It operates in four segments: US consumer services, US commercial services, international card services, and global merchant and network services. In addition to payment products, the company's commercial business offers expense management tools, consulting services, and business loans.
65GF Score
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5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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