Wells Fargo & Co said on March 18 that it would issue a special cash dividend to its common stockholders, following the results of the Federal Reserve's second round of stress tests.
The total first-quarter dividend will be 12 cents a share. That includes 5 cents announced in January and special 7-cent payout announced on March 18. Chief Executive Officer John Stumpf said in a statement that the bank was ultimately targeting a 30 percent dividend payout ratio.
Wells Fargo also said its board had increased the bank's authority to repurchase common stock by an additional 200 million shares. The Federal Reserve notified US banks of the results of its second round of stress testing, allowing some of the largest to boost or restart dividend payments this year.
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