Wells Fargo Raises Quarterly Dividend 11.1% to $0.50

Wells Fargo & Company raised its quarterly common dividend 11.1% to $0.50 a share from $0.45. The latest payment traded ex-dividend on August 7, 2026, and the new rate lifts the annualized dividend to $2.00 a share.

Why the dividend changed

The board’s approval completed a capital-return action that Wells Fargo had signaled before the declaration. The company did not attribute the increase to a split, merger, spin-off or other special situation. Its recent results instead point to stronger earnings and sufficient regulatory capital as the basis for the higher distribution.

Wells Fargo reported second-quarter net income of $6.4 billion, or $2.00 per diluted share, compared with $5.5 billion and $1.60 per diluted share a year earlier. Revenue rose 9% to $22.6 billion as net interest income increased 5% and noninterest income advanced 13%. Chief Executive Charlie Scharf said the bank’s capital generation allowed it to expand lending while continuing to return capital to shareholders. The company also repurchased 37.4 million common shares for $3.0 billion during the quarter. Wells Fargo’s second-quarter release provides the operating and capital-return context.

Capital remained above the level needed to support distributions. The bank reported a Common Equity Tier 1 ratio of 10.3% at June 30, 2026. Its regulatory filing said the current stress capital buffer was 2.50% and was expected to remain in effect through September 30, 2027. The same filing recorded the board’s approval of the higher third-quarter dividend. Wells Fargo’s Form 10-Q explains how regulatory capital and stress testing govern dividends and repurchases.

Dividend track record

The increase extends Wells Fargo’s dividend-growth streak to 4 consecutive years, but the record includes a material reset. The last annual cut occurred in 2020. Its full-year dividend then fell 50.8% to $0.60 a share in 2021 from $1.22 in 2020, reflecting the reduced rate for a full calendar year.

Annual payments subsequently recovered to $1.10 in 2022, $1.30 in 2023, $1.50 in 2024 and $1.70 in 2025. Those totals rose 83.3%, 18.2%, 15.4% and 13.3%, respectively. The five-year annualized dividend growth rate is 33.6%, but that figure starts from the depressed post-cut base and therefore overstates the pace investors would normally expect from a mature bank.

The recent payment sequence shows a stepwise policy. Wells Fargo paid $0.40 through May 9, 2025, moved to $0.45 beginning August 8, 2025, and maintained that rate for four payments before the latest increase to $0.50. The pattern indicates annual rate reviews rather than small changes every quarter.

Is the dividend covered?

The dividend consumes 26% of earnings. That leaves most reported profit available for balance-sheet growth, credit costs, repurchases and capital retention, providing a meaningful earnings cushion around the common dividend.

SmarterDividends rates the dividend B, with a safety score of 70. That places Wells Fargo in the safe range of 66-79. In plain terms, current earnings coverage and the bank’s recent record support the payment, while the 2020 cut and the regulatory constraints that apply to large banks prevent the dividend from receiving the highest safety grade.

Yield and valuation

The forward yield is 2.44%, below the Financial Services sector median of 5.70%. The gap means the increase raises cash income but does not make Wells Fargo a high-yielding name relative to its sector.

At a share price of $81.60, SmarterDividends estimates fair value at $133.45. Its valuation verdict is undervalued, with 55% upside to fair value. The company’s market value is $246.8 billion, while its one-year price return fell 1.0%.

What to watch

The next operating checkpoint is Wells Fargo’s third-quarter earnings report, scheduled for October 13, 2026, at 10 a.m. Eastern time, according to the company’s investor-relations calendar. The report will show whether loan growth, deposit trends and operating leverage continued after the strong second quarter.

Credit costs and capital deployment also matter for dividend coverage. Investors can track provisions and net charge-offs alongside the CET1 ratio, share repurchases and balance-sheet growth. Future declarations remain subject to board approval and the capital-distribution rules described in the bank’s regulatory filings. Wells Fargo’s dividend announcement confirms the latest board action.