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.