American Express to Boost Dividend by 15% to 60 Cents

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 [e-mail]

(END) Dow Jones Newswires

01-27-23 0738ET