Wells Fargo & Co (WFC) Dividend Increase

Wells Fargo & Co (WFC) announced a proposal to increase its dividend by 16.7% – from  a quarterly cash dividend of $0.30 to $0.35 per share. The increase in dividends is subject to approval from the board of directors in April and will be effective second quarter of this year. When approved, this will be the fourth consecutive increase since 2009. The proposal also includes a plan to increase its common stock repurchase activity with an increase of 350M additional shares in the company’s authority to repurchase.

Annually, the dividends rise from $1.20 to $1.40 per share. My portfolio consists of 41 shares of WFC, which increases my annual dividends from $49.20 to $57.40. My yield-on-cost rises to 3.52% with this dividend increase.

 

6 thoughts on “Wells Fargo & Co (WFC) Dividend Increase

  1. I was waiting for the increase announcement and it sure was welcome. The quarterly rate is now higher than before the cut back in 2008. Plus I got JPM and BAC’s increase too, so yesterday was a great day for dividend growth for my portfolio.

    • Congrats on the triple raises, JC!
      Yeah its good to see that we are now above the pre-crash levels of dividends. WFC has built quite a portfolio as a mortgage lender over the last couple of years. I will looking to add to my position when theres a pullback.

      Thanks for stopping by.
      regards

  2. Congratulations on the Dividend increase! I’m usually happy with anything over 6%, so 16% is likely to be very well received. An increase in dividends and an improved YOC make this whole strategy worthwhile. It feels like getting a medal at the end of a race for me (but maybe that’s just me!).
    All the best
    Huw

    • Huw,
      I know what you mean. It is very rewarding not only when they raise the dividends more than you expect, but simply the act of raising dividends….increases your income stream year-after-year and makes your investment worthwhile.

      Thanks for stopping by.

      Best wishes
      R2R

  3. Great call pulling the trigger on WFC, I looked at purchasing some a couple years back but my fear outweighed my logic at the time. I should have held my nose and bought!

    • Hi Marvin,
      I guess we all wish we had bought stocks when they were at their lows a few years ago. Overall, I am happy with WFC and want to buy more, but WFC has had quite a runup in the last couple months. WFC will do well even in rising rate environments – and the fact that its a Buffett/Berkshire favorite and largest holding also doesnt hurt.

      Thanks for stopping by.

      regards

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