
The Wells Fargo dividend yield has historically been around 3.5%, which is lower than the industry average of 4.2%. This is a key factor for investors considering the stock for its income potential.
Compared to its peers, Wells Fargo's dividend yield is relatively lower. JPMorgan Chase, for example, has a dividend yield of around 4.1%. However, it's essential to note that Wells Fargo's dividend yield has been steadily increasing over the years, making it an attractive option for long-term investors.
Historically, Wells Fargo's dividend yield has been influenced by the company's financial performance. During periods of strong growth, the dividend yield has been lower, and during periods of economic downturn, the yield has been higher.
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WFC Dividend Yield Analysis
The WFC dividend yield is relatively low, averaging around 3.5% over the past five years.
This low yield is due in part to the company's history of steady dividend growth, which has increased the dividend payout by 7% annually.
A 3.5% dividend yield is not unusually high or low compared to other financial institutions, and investors should consider the company's overall financial health and growth prospects when evaluating the dividend yield.
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Criteria Checks 4/6
Wells Fargo is a dividend paying company, which is a great starting point for our analysis.
The current dividend yield is 2.02%, a relatively attractive figure for investors.
This dividend yield is well covered by earnings, which means it's sustainable in the long term.
The fact that Wells Fargo is a dividend paying company already gives it a solid foundation for our dividend yield analysis.
WFC vs Peers
In this section, we'll take a closer look at how WFC-PZ's dividend yield compares to its peers. WFC-PZ's dividend yield is 1.97%, which is a relatively strong return for investors.
Let's see how it stacks up against some of its major competitors. Bank of America Corporation (BAC-PN) has a dividend yield of 2.16%, making it the highest among the four companies listed.
However, it's worth noting that Bank of America's market cap is significantly larger than WFC-PZ's, at $163.79B compared to WFC-PZ's $60.29B.
Here's a comparison of the dividend yields of the four companies:
As you can see, WFC-PZ's dividend yield is lower than Bank of America's, but higher than JPMorgan Chase's.
WFC Dividend Yield History
The WFC dividend yield has experienced significant fluctuations over the years. The maximum annual increase was a staggering 81.02% in 2022.
In 2018, the dividend yield reached a high of 4.21%, representing a notable 41.59% increase from the previous year. Conversely, the yield dropped to 2.97% in 2017, a 7.40% decline from 2016.
The dividend yield has also seen some dramatic decreases, with a 62.34% drop in 2021 and a 100% drop in 2024.
WFC Dividend Yield Performance
Wells Fargo & Co. has a dividend yield of above 3% based on its quarterly dividend of $1.20, with the stock trading as low as $39.99.
Historically, dividends have provided a considerable share of the stock market's total return. To illustrate, if you purchased shares of the S&P 500 ETF (SPY) back on 12/31/1999, you would have collected a whopping $25.98 per share in dividends over the same period, for a positive total return of 23.36%.
Collecting a yield above 3% would appear considerably attractive if that yield is sustainable, especially considering the average annual total return of about 1.6% even with dividends reinvested.
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Past Performance
WFC-PZ's Dividend Yield has a mean historical value of 3.10% over the last ten years.
The current Dividend Yield of 1.97% is a significant decrease from the historical average, down by 36.61%.
WFC-PZ's Dividend Yield was at its highest in the June 2020 quarter at 2.28%.
The Dividend Yield was at its lowest in the December 2024 quarter at 0%.
WFC-PZ vs Peers
WFC-PZ's Dividend Yield is 1.97% lower than Bank of America Corporation's (BAC-PN) 2.16% yield.
Looking at the market caps of these financial institutions, Bank of America Corporation has a significantly larger market cap at $163.79B compared to WFC-PZ's market cap.
Here's a comparison of the dividend yields of WFC-PZ and its peers:
WFC-PZ's market cap is lower than JPMorgan Chase & Co.'s (JPM-PM) $52.90B market cap.
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WFC Dividend Yield Details
Wells Fargo & Company's dividend yield has fluctuated significantly over the years, with a maximum annual increase of 81.02% in 2022.
The highest dividend yield was 4.94% in 2020, which is a notable increase from the previous year.
A look at the data shows that the dividend yield has been above 3% in 5 out of the 7 years listed, indicating a relatively stable trend.
Here's a breakdown of the annual changes in dividend yield:
This data suggests that the company's dividend yield can be quite volatile, with significant increases and decreases from one year to the next.
Frequently Asked Questions
How often does WFC pay dividends?
Wells Fargo & Company pays dividends on a quarterly basis. This means investors receive four dividend payments per year.
Sources
- https://simplywall.st/stocks/us/banks/nyse-wfc.prc/wells-fargo/dividend
- https://www.wisesheets.io/dividend-yield/WFC-PZ
- https://www.thedividendpig.com/dividend-stocks/Financial/Money-Center-Banks/WFC-Wells-Fargo-and-Co/
- https://www.dividendinvestor.com/dividend-history-detail/wfc/
- https://www.forbes.com/sites/dividendchannel/2013/06/03/wfc-dividend-yield-pushes-past-3/
- https://www.fool.com/investing/2020/07/28/wells-fargo-cuts-dividend-by-80.aspx
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