3 Reasons to Sell American Express

Updated

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

In today's edition, Austin gives investors three reasons to consider selling shares of American Express today. He thinks the domestic market has already achieved impressive penetration and doesn't have a lot of room left to grow. Internationally, American Express still has a lot of catching up to do as well. Regulation and expected performance round out his three reasons you may want to pull the sell trigger.

For the income investor, the company leaves a whole lot to be desired as well. Its 1.4% yield trails the broad market and is less than half of the Dow Jones' average yield. If you're looking for big income producers, though, there are other stocks. You can read about how to "Secure Your Future With 9 Rock-Solid Dividend Stocks" in our special free report. Just click here to uncover the winners today.

At the time thisarticle was published Austin Smithhas no positions in the stocks mentioned above. The Motley Fool owns shares of MasterCard.Motley Fool newsletter services recommendAmerican Express 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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