Is American Express Stock a Millionaire Maker?

Credit cards are big business in the United States, where consumers collectively hold over $1.25 trillion in debt. American Express (NYSE: AXP) has been around since the 1800s, was at the forefront of the rise of credit cards, and remains one of the finance industry's power players, known as a premium brand associated with businesses and high earners.

The company's closed-loop business model as the card issuer, lender, and payment processor has afforded it unique flexibility and made the stock a big winner, outperforming the S&P 500 (SNPINDEX: ^GSPC) over its lifetime. Here's why American Express stock can still make investors millionaires, albeit slowly.

Amex's brand is landing with young spenders

One of the most fascinating trends among young adults is their lean toward lifestyle spending. As soaring home prices put ownership further out of reach, more millennials and Gen Z consumers are prioritizing experiences, vacations, and eating out. It aligns them perfectly with American Express's most famous products, premium credit and charge cards that award borrowers with perks, credits, and point multipliers on those spend categories.

Image source: The Motley Fool.

American Express has confirmed this, noting that young adults have been the company's fastest-growing customer cohort. American Express might have the most brand power of any credit card company, and getting young consumers on board early in their adult lives could pay off for decades as older generations pass trillions of dollars in wealth to them.

The math behind getting rich slowly

For a company that's been in business since 1850, American Express continues to flex impressive growth prospects. Premium products such as the Platinum Card are thriving, and Wall Street analysts currently expect the company to grow earnings by 13% to 14% annually over the next three to five years.

Of course, as you zoom out, the economy will fluctuate. Although American Express's core customers are premium borrowers and high earners, recessions are still bad for business. To account for economic downturns, I'll lower my assumed annualized earnings growth rate to 10%. The stock's dividend adds another 1.1%, bringing the annual total return to approximately 11%.

American Express trades at less than 20 times 2026 earnings estimates. It's a very reasonable price for that growth, so investors can reasonably expect long-term growth to translate well to investment returns. In other words, it seems unlikely that the stock's valuation craters, overshadowing the underlying business growth. Using the rule of 72, investors could see their investment double in value every six to seven years.

No, that won't make you a millionaire overnight, but that compounds very nicely over 30 to 40 years. Credit cards are central to consumer behavior in the United States, and the youngest spenders are only reinforcing that. American Express stock could absolutely help you build life-changing wealth over a few decades.

American Express is an advertising partner of Motley Fool Money. Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends American Express. The Motley Fool has a disclosure policy.