Fortifying the Coffers: Two Stocks for the Ages

Right then. Let’s talk about building a portfolio that doesn’t vanish the moment the market decides to have a bit of a wobble. Most folks chase the shiny new thing, the digital alchemy promising overnight riches. Foolishness, I say. Give me a solid foundation, something that’ll still be there when the latest tech bubble has popped and everyone’s back to bartering for turnips. Dividend stocks, you see, are the bedrock. They provide a trickle of income – a small reassurance that even when the world is going to pot, you still have something coming in. And two, in particular, have caught my eye. Not because they’re exciting, mind you. Excitement is for gamblers and those who haven’t yet learned the value of a well-placed hedge. But because they’re… persistent. Like a particularly stubborn badger.

I’m talking about American Express and Bank of America. Two institutions that have seen empires rise and fall, financial panics come and go, and still managed to keep counting the money. Warren Buffett likes them, and while I wouldn’t blindly follow anyone (especially not someone who made his fortune predicting what other people will do), it’s worth paying attention. The man understands value, even if he does have a fondness for cherry cola.¹

1. American Express: The Card Sharp

American Express. Now there’s a company with a history. Founded in 1850, which means they’ve been facilitating transactions since before most countries had plumbing. They started as a delivery service, you know. Delivering things. Imagine that. Now they deliver…well, purchasing power. It’s a subtle difference. The key is adaptability. They haven’t remained a dusty relic of the past. They’ve embraced the newfangled technologies, the digital sprites and flashing screens, and bent them to their will. They’ve even started courting the Gen Z crowd, those digital natives who communicate primarily through pictures of cats.²

The numbers don’t lie. Revenue is up, rising a respectable 10% year over year. And while Gen Z spending only accounts for 6% of total revenue, it’s a 38% increase. That’s a good sign. It means they’re not just relying on the habits of their grandfathers. They’re cultivating a new generation of spenders. And the real magic, you see, lies in the operating model. It’s a loyalty engine, a beautifully crafted system that keeps those cards swiping and those fees rolling in. They’ve been raising those card fees for thirty straight quarters. Thirty! That’s a testament to their power, their ability to extract value from a willing (and often slightly bewildered) public. The dividend yield is modest, around 1%, but it’s been steadily increasing. A small reward, perhaps, but a reward nonetheless.

2. Bank of America: The Solid Cornerstone

Bank of America. The second-largest bank in the United States. A behemoth, really. And like all large organizations, it’s a complex and often baffling creature. But beneath the layers of bureaucracy and quarterly reports, there’s a simple principle at work: they provide a service that people need. They manage money. They facilitate transactions. And they do it with a level of competence that, while not always inspiring, is undeniably effective. They had a rather good 2025, if you’re into that sort of thing. Earnings per share up 13%, return on tangible common equity up 1.28 percentage points, deposits up 3%. They’re adding new accounts, new credit cards, new relationships. It’s a relentless expansion, a slow but steady encroachment on the financial landscape.

And, like most sensible institutions, they’re embracing artificial intelligence. A digital chatbot has been answering questions for years. They’re using AI for coding, for prompting. It’s all very clever, very efficient. And it’s allowing them to keep headcount relatively stable, even reduce it. A bit cold-blooded, perhaps, but perfectly logical from a purely financial perspective. They’ve been paying a dividend for over twenty years, with a current yield of 2.1%. A solid, dependable income stream. Not glamorous, certainly, but reassuringly stable.

So there you have it. Two stocks, two institutions, two pillars of the financial world. They’re not going to make you rich overnight. They’re not going to double your money in a month. But they’re going to provide a steady, reliable income stream. And in a world that’s increasingly unpredictable, that’s a valuable thing indeed. Now, if you’ll excuse me, I have a portfolio to review and a rather strong cup of tea to brew.

¹ There’s a theory, you see, that Buffett’s fondness for cherry cola is a subtle form of market manipulation. The idea being that by creating a demand for a relatively obscure beverage, he can influence the price of sugar futures. It’s probably nonsense, of course, but it’s a good story.
² Cats, you see, are the natural enemies of financial instability. Their inherent unpredictability disrupts the smooth functioning of the market. It’s a little-known fact, but a crucial one.

2026-02-20 13:54

1. American Express: The Card Sharp

2. Bank of America: The Solid Cornerstone

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