Unlike Its Competitors, Wells Fargo Will Cut Its Dividend in Q3
Most large banks say they will maintain their normal dividends in the third quarter, but as suspected, Wells Fargo (NYSE: WFC) expects to have to reduce its dividend from its current level of $0.51 per common share. The company said in a press release that the third quarter dividend amount will be released on July 14. Other large banks in the U.S., including JPMorgan Chase (NYSE: JPM), Bank of America (NYSE: BAC), Citigroup (NYSE: C), Morgan Stanley (NYSE: MS), and Goldman Sachs (NYSE: GS), all said they will continue to distribute dividends at their current levels in the third quarter.
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Last week, the Federal Reserve released the initial results of its annual bank stress tests. During this exercise, the Fed puts banks through various hypothetical adverse economic scenarios to see if their regulatory capital can withstand economic downturns of different degrees. The Fed tested 33 banks, each with more than $100 billion in assets.
Source Fool.com
