Wells Fargo sets $0.40 dividend, approves $40B buyback

SAN FRANCISCO - Wells Fargo & Company (NYSE: WFC) today announced a quarterly common stock dividend of $0.40 per share, scheduled for payment on June 1, 2025, to shareholders on record as of May 9, 2025. Alongside the dividend, the company’s board of directors has authorized a new stock repurchase program with a ceiling of $40 billion, set to commence following the completion of its current buyback initiative.

The execution of the repurchase program will adhere to Wells Fargo’s internal capital adequacy guidelines, taking into account market conditions, regulatory capital demands, and additional risk factors.

CEO Charlie Scharf commented on the company’s financial health, stating, "Our balance sheet and capital levels remain strong and we have returned a significant amount of capital to shareholders over the past five years, including reducing our average common shares outstanding by 22% since 2019." This aggressive share buyback strategy has contributed to the company’s strong performance, with Wells Fargo showing an 18.9% total return over the past year. Trading at a P/E ratio of 12.3, InvestingPro analysis suggests the stock is currently undervalued relative to its Fair Value. Scharf highlighted the company’s investment in organic growth and earnings capacity improvements across its businesses, which he believes will support a competitive and sustainable dividend while allowing for the return of excess capital through repurchases.

Wells Fargo, with approximately $1.9 trillion in assets, is recognized as a leading financial services institution. It offers a broad range of banking, investment, mortgage, consumer, and commercial finance services through its four primary operating segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management. The company was ranked No. 34 on Fortune’s 2024 list of America’s largest corporations.

The news release includes forward-looking statements regarding the company’s future financial performance and business prospects. For deeper insights into Wells Fargo’s financial health and future prospects, InvestingPro subscribers can access comprehensive analysis, including 8 additional ProTips and detailed financial metrics through the Pro Research Report, part of the extensive coverage available for over 1,400 US stocks. Wells Fargo cautions that such statements are subject to risks and uncertainties and that actual results may differ materially from those projected. The company does not commit to updating forward-looking statements post-publication to reflect subsequent events or changes. Investors are advised to consult the company’s filings with the Securities and Exchange Commission, including its 2024 Annual Report on Form 10-K, for a discussion of potential risks.

The information in this article is based on a press release statement from Wells Fargo & Company.

In other recent news, Wells Fargo reported its first-quarter 2025 earnings, revealing an earnings per share (EPS) of $1.39, surpassing the forecasted $1.23. However, revenue fell short of expectations, coming in at $20.15 billion against an anticipated $20.75 billion. The bank’s net income was reported at $4.9 billion. Despite the revenue miss, Wells Fargo continues to focus on fee-based revenue growth and operational efficiency. In another development, the Consumer Financial Protection Bureau’s 2018 consent order related to Wells Fargo’s compliance risk management program has been terminated. This marks the twelfth consent order resolved since 2019, indicating progress in addressing regulatory concerns. Additionally, Wells Fargo has issued a series of medium-term notes totaling $8 billion, including $3 billion in Senior Redeemable Fixed-to-Floating Rate Notes due in 2036. Meanwhile, Truist Securities adjusted their outlook on Wells Fargo, lowering the stock price target to $180 from $285, while maintaining a Buy rating.

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