By Will Feuer

 

American Express Co. said it plans to boost its quarterly dividend by 15% after issuing better-than-expected guidance for 2023.

The New York City-based credit-card company said on Friday that it plans to increase its dividend to 60 cents a share from 52 cents a share, starting with the first quarter this year.

The new dividend payout, equal to $2.40 a year, represents an annual yield of 1.5% based on Thursday's closing price of $155.88.

Shares rose almost 5%, to $163, in the premarket session Friday.

The dividend boost comes as American Express issued 2023 revenue and profit guidance that beat Wall Street expectations. However, fourth-quarter results fell short of analyst estimates as the company set more cash away to cover potential credit losses.

 

Write to Will Feuer at Will.Feuer@wsj.com

 

(END) Dow Jones Newswires

January 27, 2023 07:38 ET (12:38 GMT)

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