American Express

Management is shareholder-friendly and reinvests smartly. AmEx has a track record of returning excess cash: in 2024 it repurchased 23.9M shares ($5.9B) and paid $2.0B in dividends) (dividend +17% announced late 2024). This represented 76% of total capital generated, reflecting disciplined buybacks at attractive prices.

At the same time, AmEx has acquired businesses that strengthen its ecosystem – e.g., restaurant tech (Resy, Tock, Rooam) to deepen loyalty, and it recently sold non-core Accertify for a gain. Capital expenditures are moderate (technology and data centers), supporting future growth without unusual dilution.

Stock-based compensation ($504M in 2024)) is modest relative to earnings, so share count continues to shrink. We score 80: capital allocation has been excellent, balancing reinvestment (loyalty programs, partnerships in dining) with returns and dividend growth.