WFC - 3 Banks That Are Paying You More Money to Own Them
Although American banks may appear to some to be all-powerful, they're actually constrained in many ways by the Federal Reserve. One big area of the Fed's purview is banks' shareholder remuneration. Every year, in its stress tests of American lenders, the monetary authority effectively determines if and by how much a lender can spend on dividends and/or stock-repurchase plans.
Happily, all eligible banks performed well in the 2022 edition of the stress tests. That's a boon for shareholders, as a group of those lenders were hoping to declare dividend raises and are now essentially 100% free to do so. Let's take a look at three of the more notable hikes, from Bank of America (NYSE: BAC) , Morgan Stanley (NYSE: MS) , and Wells Fargo (NYSE: WFC) .
The most conservative dividend raise among our trio comes from Bank of America. After it passed its stress test , the sturdy old lender said it aims to lift its payout by 5% in 2022, beginning later this quarter, to $0.22 per share.
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3 Banks That Are Paying You More Money to Own Them