Wells Fargo & Co., the fourth-largest U.S. bank and the biggest bank based in California, raised its quarterly dividend 50% to 45 cents a share.
The dividend is payable Sept. 1 to shareholders of record on Aug. 8. The higher dividend will allow Wells' investors to benefit from the recent cut in the dividend tax to 15%, the company said. The increase means shareholders will receive a 3.5% dividend yield, up from 2.2%. Rivals Citigroup Inc. and Bank of America Corp. boosted their dividends this month after President Bush signed the tax cut.
Shares of San Francisco-based Wells rose 73 cents to $51.97 on the NYSE.