Warren Buffett’s Berkshire Hathaway (NYSE:BRKa) continues to hold a substantial 20% stake in American Express (NYSE: NYSE:AXP), currently valued at $26 billion, despite the credit card company’s shares remaining flat and declining about 25% from their peak this year. The underwhelming performance has pushed the dividend yield to 1.61%, a record since the market meltdown in March 2020. Notably, American Express’ price-to-earnings ratio (P/E) is currently lower than the market average, standing at 14.77.

American Express, backed by Warren Buffett, prides itself on a successful Platinum card program, which has attracted 3 million new users and generated a significant $427 billion payment volume. This sum accounts for 58% of its revenue. The company has achieved 99% U.S. merchant acceptance and doubled international acceptance.

The company’s anticipated earnings per share (EPS) stand at $11, marking a 31% reduction in share count over a decade, and a 239% dividend growth signals strong future performance. The dividend growth for the last twelve months was 15.38%. If dividends continue to grow at the same rate, it will yield 4.80% in a decade, making it an appealing long-term investment prospect.

Despite the recent dip in share price, American Express has shown strong financial health. The company boasts high earnings quality, with free cash flow exceeding net income. The company also yields a high return on invested capital. Notably, American Express has maintained dividend payments for 53 consecutive years, a testament to its commitment to deliver value to its stockholders