Wells Fargo & Company Declares Cash Dividends on Preferred Stock
SAN FRANCISCO Wells Fargo & Company (NYSE: WFC) announced dividends on six series of preferred stock today.The company declared a quarterly cash dividend of $18.75 per share on its 7.50% noncumulative perpetual convertible class A preferred stock, Series L.The liquidation preference for this stock is $1,000 per share, and it is traded on the New York Stock Exchange under the symbol WFCPrL.Shareholders of record as of August 30th will receive the dividend on September 16, 2024.
As of the writing of this article, Wells Fargo’s earnings per share in the second quarter of 2024 have seen an increase, resulting in a decrease in the 12-month dividend payout ratio to 21.54%. It is not surprising that the payout ratio remains below the company’s average given the continuous rise in earnings.This raises the question of whether Wells Fargo will soon increase its dividend.
Comparing Wells Fargo’s performance to its peers in the Financial sector, it can be noted that 306 companies have a higher 12-month dividend payout ratio.In terms of ranking among all other companies, Wells Fargo moved from the 471st position in the first quarter of 2024 to 525th.
In conclusion, Wells Fargo & Company has declared cash dividends on its preferred stocks, including the Series L stock.The company’s earnings per share have increased, leading to a decrease in the 12-month dividend payout ratio.However, when compared to its peers, Wells Fargo ranks below many other companies in terms of dividend payout ratio.The question remains whether the company will raise its dividend soon.
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