Should You Love This Dow Stock?: American Express

Updated

The following video is part of our "Motley Fool Conversations" series, in which consumer goods editor and analyst Austin Smith and technology analyst and editor Andrew Tonner discuss topics across the investing world.

In today's edition, Andrew and Austin discuss whether investors should love a classic Dow component: American Express. To answer this question, investors really need to figure out where they stand on closed versus open loop credit card systems. It's an undeniable fact that consumers are increasingly paying with plastic instead of cash. While the open loop system may have more reach currently, the ability for closed systems to realize full value along the transaction chain makes companies like American Express a compelling buy.

Most investors come to the Dow looking for great dividends. If American Express' 1.4% yield isn't enough to get you excited, you should take a look at our special free report: "Secure Your Future With 11 Rock-Solid Dividend Stocks." You can access a totally free copy of the report today. Just click here to discover the winners we've picked.

At the time thisarticle was published Austin Smith has no positions in the stocks mentioned above. Andrew Tonner has no positions in the stocks mentioned above. The Motley Fool owns shares of Bank of America and MasterCard.Motley Fool newsletter services recommendAmerican Express Company and Visa. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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