Wells Fargo Says it Expects to Cut Dividend in the Third Quarter to Comply with Fed Stress Test
Wells Fargo warned on Monday that it will likely cut its dividend after the Federal Reserve announced it would cap dividends for banks based on earnings. Wall Street analysts pointed to Wells Fargo as a likely candidate to cut its dividend following the announcement by the central bank last week, which came after the stress tests the Fed gives to major financial institutions.
The company’s previous quarterly common stock dividend was 51 cents per share. The bank said in a press release that it expects to announce the new dividend when it reports quarterly earnings on July 14. Shares of the bank fell 1.7% in extended trading. Read more…………..
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Scott Wren, Wells Fargo Investment Institute, and Kevin Nicholson, Riverfront Investment Group portfolio manager, join ‘Power Lunch’ to discuss the state of the markets amid growing concern over the uptick in coronavirus cases in the U.S.