Wells Fargo (WFC) announced an increased quarterly cash dividend of $0.20 per share, up 100% from the prior quarter, as approved by its board of directors. Prior to this, the global financial services company had slashed its dividend to $0.10 per share from $0.51 last July.
Wells Fargo announced that the new dividend will be paid on September 1, to shareholders of record as of August 6.
The company’s annual dividend of $0.80 per share now reflects a dividend yield of 1.8%.
On July 14, Wells Fargo reported Q2 results. Reported earnings of $1.38 per share outpaced Street estimates of $0.97. The company reported a loss of $1.01 in the same quarter last year. Revenues increased 10.8% year-over-year to $20.27 billion and exceeded analysts’ expectations of $17.75 billion. (See Wells Fargo stock charts on TipRanks)
Following the Q2 earnings announcement, Barclays analyst Jason Goldberg maintained a Hold rating but lifted the stock’s price target to $50 (10.8% upside potential) from $46.
Based on a better-than-previously expected asset quality environment, Goldberg increased his earnings estimates to $3.75 from $3.50 per share for 2022.
The rest of the Street is cautiously optimistic about the stock, with a Moderate Buy consensus rating. That’s based on 5 analysts suggesting a Buy and 7 analysts recommending a Hold. The average Wells Fargo price target of $50.78 implies a 12.5% upside potential to current levels. Shares have increased 52% so far this year.
TipRanks data shows that financial blogger opinions are 73% Bullish on WFC, compared to a sector average of 70%.
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