Wells Fargo & Co Declares Dividend, Increases Buybacks
WFC Stock Returning Cash to Investors
When it comes to rewarding shareholders, Wells Fargo & Co (NYSE:WFC) stands out. With both dividends and buybacks, the company has returned tens of billions of dollars to investors. And now, it has another piece of good news.
On Tuesday, January 23, the board of directors of Wells Fargo declared a quarterly common stock dividend of $0.39 per share. The dividend is payable on March 1, 2018 to shareholders of record as of February 2. (Source: “Wells Fargo & Company Announces Common Dividend and Increased Common Stock Repurchase Authority,” Wells Fargo & Co, January 23, 2018.)
While the amount is the same as last quarter’s payout, it represents a 2.6% increase from a year ago. Since 2010, Wells Fargo’s quarterly dividend rate has grown by a whopping 680%. (Source: “Stock Price and Dividends,” Wells Fargo & Co, last accessed January 23, 2018.)
In the same press release, Wells Fargo also said that the board of directors has increased the company’s authority to repurchase an additional 350 million shares of its common stock.
With share buybacks, investors don’t get a check in the mail directly. However, when a company buys back its stock, it reduces the number of shares outstanding, so each existing shareholder gets to own a slightly larger portion of the company. Right now, Wells Fargo & Co has approximately 4.9 billion shares outstanding.
Trading at around $64.49 apiece, WFC stock has an annual dividend yield of 2.42%.