Wells Fargo (NYSE:WFC) has taken a chainsaw to its dividend. The company announced Tuesday that its board of directors formally declared a quarterly common stock payout of $0.10 per share, payable on Sep. … The big dividend cut lowers Wells Fargo’s yield considerably.
Is Wells Fargo dividend Safe 2020?
Overall, KBW analysts believe dividends are “broadly safe” for 90% of banks. … Wells Fargo’s quarterly dividend is $0.51 per share. That would result in a yield of 9.10%, based on the stock’s closing price of $22.42 on May 13. Kleinhanzl in his note cited an estimated dividend payout of 221% for Wells Fargo in 2020.
Will Wells Fargo raise its dividend in 2021?
Doubling the quarterly dividend
In terms of payout ratio, analysts on average expect Wells Fargo to generate earnings per share (EPS) of $3.82 in 2021.
Did Warren Buffett sell Wells Fargo?
Berkshire (BRK. A, BRK.B) has been steadily selling its stake in Wells Fargo since early 2020. The company held 345 million shares of Wells Fargo at the end of 2019. CEO Warren Buffett had long been a fan of the bank, having held a stake for more than 30 years.
Does Warren Buffett still own Wells Fargo stock?
Warren Buffett, through Berkshire Hathaway Inc. BRK. B, recently divested approximately all of its stake in his more than 31-year-old investment Wells Fargo (WFC). … Nonetheless, Buffett continues to own shares of other banks, including The Bank of New York Mellon Corporation BK, U.S. Bancorp USB and Bank of America BAC.
Does Wells Fargo pay dividend?
After the big dividend cut last year, Wells Fargo paid a quarterly dividend of $0.10 per common share, which suggests an annual dividend of $0.40 per share. With the stock recently trading at $43, Wells Fargo has a dividend yield of less than 1%, which is too low.
Is Wells Fargo stock a good buy?
Right now, shares are a little more expensive, but not overvalued at all. With the dividend doubling in the foreseeable future, Wells Fargo could be on track for becoming a major income investment once again – a status it had lost when it cut the dividend last year.
Is Wells Fargo buying back stock?
June 28 (Reuters) – Wells Fargo & Co said on Monday it planned to repurchase $18 billion worth of shares for the period between the third quarter of 2021 and the second quarter of 2022.
Why did Warren Buffett sell banks?
Buffett dumped the banks because he feared Berkshire was overexposed to the sector and could suffer if the pandemic worsened, he said at Berkshire’s recent shareholder meeting. “We overall didn’t want as much in banks as we had,” he said.